GEICO offers the best affordable car insurance for drivers with bad credit, averaging $1,150 a year or $96 a month. Bad credit increases premiums because insurers consider these drivers at higher risk, but affordable options exist.
Best Cheap Car Insurance for Drivers With Bad Credit
Updated: June 1, 2026
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Key Takeaways
Progressive is the best car insurance company for drivers with bad credit, followed by Travelers, based on MoneyGeek's scoring.
Drivers with bad credit pay $85 more per month than those with good credit. MoneyGeek's analysis of 529,578 quotes shows that poor credit can increase your annual insurance costs by over $1,000.
Insurance companies use your credit score to predict how likely you are to file a claim and whether you'll pay on time. Lower credit scores result in higher premiums because insurers view these drivers as higher risk.
Best Cheap Car Insurance for Drivers With Bad Credit
| Geico | $96 | $1,150 |
| Travelers | $118 | $1,411 |
| Nationwide | $122 | $1,463 |
| Progressive | $142 | $1,709 |
| Allstate | $148 | $1,772 |
| Farmers | $162 | $1,945 |
| State Farm | $263 | $3,158 |
Best Car Insurance Companies for Drivers With Bad Credit
Price matters, but so does customer service quality. Progressive is the best car insurance for drivers with poor credit, followed by Travelers. The right choice depends on your situation.
Progressive
MoneyGeek Score:
92/ 100
Monthly Premium$142
Annual Premium$1,709
Overview
Progressive offers competitive rates and comprehensive coverage for drivers with bad credit. The company provides accident forgiveness to prevent rate increases after your first at-fault accident and includes roadside assistance for car troubles. Progressive offers multiple discounts, including a bundling discount for combining auto and home insurance.
Progressive will reconsider your rates when factors that influence pricing change. Be prepared to provide documentation of your improved credit score. Progressive may not automatically check your credit regularly, so being proactive can save you money if your score increases.
Travelers
MoneyGeek Score:
92/ 100
Monthly Premium$118
Annual Premium$1,411
Overview
Travelers offers new car replacement and accident forgiveness for drivers with bad credit. Its new car replacement coverage replaces your totaled vehicle with a brand-new one of the same make and model. Travelers also offers an accident forgiveness program to keep rates steady after your first accident. Discounts for accident-free drivers and students with good grades help policyholders save.
Travelers factors your credit score into your rate but won't recheck it automatically if your score improves. Call to request a review. When Travelers reviews your policy again, it considers your improved credit score, driving record and claims history.
Car Insurance for Drivers With Poor Credit: Buying Guide
Rates, coverage options and customer service all factor into the right choice. The tips below can help even if your credit isn't perfect.
How to Find the Best Affordable Car Insurance With Poor Credit
Here are tips to help you find the best car insurance, even with poor credit:
- 1Reduce your coverage
Check how much insurance you need before renewing your policy. If you drive an older vehicle or have few assets, liability-only coverage may cost less than full coverage.
- 2Raise your deductibles
Full coverage insurance includes comprehensive and collision, each with a deductible you pay before your insurer covers repairs or replacement. A higher deductible means a lower premium.
- 3Consider your vehicle
A car's actual cash value affects your rate. Insurers charge more to cover higher-value vehicles because parts and repairs cost more.
- 4Compare multiple quotes
Get quotes from at least three insurers to compare prices and coverage options.
Compare Car Insurance Quotes for Bad Credit
Insurers consider your age, driving history and car type, along with your credit-based insurance score, to set your rate. Use MoneyGeek's calculator to estimate your car insurance costs across providers.
Car Insurance Calculator
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$192
High
$139
Average
$87
Low
Rates updated:
Jun 19, 2026
| Insurance Provider | Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 |  State Farm | 83 /of 100 | $118 |
| 4 |  Travelers | 83 /of 100 | $129 |
| 5 |  Progressive | 79 /of 100 | $133 |
| 6 |  Farmers | 77 /of 100 | $151 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Does Bad Credit Affect Car Insurance?
In states where credit-based insurance scores are allowed, FICO reports that 95% of personal insurers use them to assess risk. Your credit score places you in one of these categories:
- Excellent: 800+
- Very good: 740 to 799
- Good: 670 to 739
- Fair: 580 to 669
- Poor: Less than 580
Actuarial data shows that people with lower credit scores file more claims. Insurers use these scores to evaluate risk, except in states that ban the practice. Poor-credit drivers pay more, which keeps costs lower for good drivers.
Ways to Save on Car Insurance With Poor Credit
Low credit doesn't prevent you from finding the best auto insurance.
Take advantage of discounts
Most insurance companies offer multiple discounts to help customers save. Bundling policies, such as auto and homeowners or renters insurance, can cut your annual costs. Multi-vehicle discounts are another common option from national and regional insurers. Other ways to reduce your premiums include good driving discounts, employer discounts and loyalty discounts.
Pay your full annual premium at once
Many insurance companies offer discounts to policyholders who pay their entire premium upfront rather than in monthly or quarterly installments.
5 Tips for Improving Your Credit Score
Poor credit doesn't have to be permanent. A better credit score can lower your insurance premiums over time.
Set up automatic bill pay
If your credit score is low due to late payments, set up automatic payments so bills get paid on time. This simple step improves your payment history and boosts your credit score over time.
Pay off balances every month
Paying your full balance each month lowers your credit utilization. It also cuts interest charges.
Work with credit agencies to boost your score
Many credit agencies let you add on-time rent and utility payments to your credit report. Contact the agencies directly to learn how your positive payment history can benefit your credit score.
Don’t apply for new accounts for a while
Each credit application results in a hard inquiry, which can lower your score for a short time. Hold off on opening new accounts to keep inquiries down.
Dispute any errors
You’re entitled to a free credit report from the major U.S. credit bureaus: Experian, Equifax and TransUnion. Review these reports for accuracy. If you find errors, such as incorrect delinquent accounts or signs of identity theft, you can dispute them to clean up your report and potentially boost your credit score.
Car Insurance Companies With No Credit Check
If you have bad credit, consider no-credit-check car insurance companies, which base premiums on factors like age and location instead of credit scores.
Major insurers rarely skip credit checks. Local providers in your area may be more flexible. California, Hawaii, Massachusetts and Michigan prohibit insurers from using credit data to set rates.
DO CAR INSURANCE QUOTES AFFECT CREDIT SCORES?
Getting a car insurance quote doesn't affect your credit score. Insurers use a soft credit check when you're getting quotes, which doesn't impact your credit.
Car Insurance for People With Bad Credit: Bottom Line
Poor credit can raise premiums by hundreds of dollars a year. Affordable coverage still exists. Comparing quotes from multiple providers is the best way to find it. Some drivers can find rates as low as $15 a month.
How Much Does Bad Credit Affect Car Insurance?
Credit history affects insurance premiums in most states. Drivers with higher scores and strong credit histories pay less. Lower scores push rates up.
Average Credit Score Cost
| Excellent | $58 | $697 |
| Good | $62 | $740 |
| Fair | $89 | $1,070 |
| Below Fair | $112 | $1,340 |
| Poor | $147 | $1,759 |
Average Credit Score Cost by Company
| Geico | $96 | $77 | $64 | $45 | $42 |
| Travelers | $118 | $98 | $75 | $51 | $46 |
| Nationwide | $122 | $106 | $94 | $72 | $65 |
| Progressive | $142 | $116 | $100 | $69 | $63 |
| Allstate | $148 | $127 | $111 | $82 | $84 |
| Farmers | $162 | $135 | $111 | $81 | $75 |
| State Farm | $263 | $155 | $93 | $51 | $40 |
Cheapest Car Insurance Companies for Poor Credit by State
GEICO offers the lowest car insurance rates in 10 states for drivers with bad credit. Kemper provides the cheapest rates in four states, while Erie, Farm Bureau and Westfield each lead in three states. Some regional insurers also offer competitive rates in certain states but lack national availability.
| Alabama | Cincinnati Insurance | $53 | $630 |
| Alaska | Western National Insurance | $97 | $1,167 |
| Arizona | Safeway Insurance | $69 | $833 |
| Arkansas | Alfa Insurance | $39 | $466 |
| California | Geico | $74 | $889 |
| Colorado | American National | $85 | $1,021 |
| Connecticut | Geico | $84 | $1,009 |
| Delaware | Geico | $99 | $1,185 |
| District of Columbia | Erie Insurance | $126 | $1,514 |
| Florida | Travelers | $92 | $1,106 |
| Georgia | Central Insurance | $83 | $990 |
| Hawaii | Geico | $47 | $558 |
| Idaho | Grange Insurance | $63 | $751 |
| Illinois | Erie Insurance | $82 | $984 |
| Indiana | Hastings Insurance | $37 | $447 |
| Iowa | IMT Insurance | $70 | $838 |
| Kansas | Shelter Insurance | $85 | $1,016 |
| Kentucky | Grange Insurance | $70 | $839 |
| Louisiana | Geico | $79 | $945 |
| Maine | MMG Insurance | $67 | $808 |
| Maryland | Geico | $83 | $1,001 |
| Massachusetts | Safety Insurance | $42 | $502 |
| Michigan | Farm Bureau | $62 | $745 |
| Minnesota | Westfield Insurance | $39 | $471 |
| Mississippi | Farm Bureau | $85 | $1,016 |
| Missouri | Kemper | $67 | $807 |
| Montana | Kemper | $95 | $1,136 |
| Nebraska | Farmers Mutual Ins Co of NE | $25 | $295 |
| Nevada | Country Financial | $78 | $936 |
| New Hampshire | Mapfre Insurance | $45 | $537 |
| New Jersey | Geico | $91 | $1,091 |
| New Mexico | Kemper | $72 | $866 |
| New York | Erie Insurance | $59 | $703 |
| North Carolina | Utica Insurance | $67 | $803 |
| North Dakota | North Star Insurance | $60 | $726 |
| Ohio | Cincinnati Insurance | $53 | $631 |
| Oklahoma | American Farmers & Ranchers | $56 | $677 |
| Oregon | Country Financial | $48 | $579 |
| Pennsylvania | Westfield Insurance | $44 | $532 |
| Rhode Island | Geico | $93 | $1,121 |
| South Carolina | Farm Bureau | $82 | $984 |
| South Dakota | Farmers Mutual Ins Co of NE | $27 | $323 |
| Tennessee | Geico | $87 | $1,042 |
| Texas | Geico | $84 | $1,011 |
| Utah | Kemper | $68 | $816 |
| Vermont | Union Mutual Insurance | $31 | $377 |
| Virginia | Auto Owners | $75 | $899 |
| Washington | National General | $65 | $780 |
| West Virginia | Westfield Insurance | $63 | $755 |
| Wisconsin | West Bend Mutual | $59 | $703 |
| Wyoming | American National | $93 | $1,121 |
*The cheapest rates depend on factors like your driving record, age and location. Compare quotes from multiple insurers in your area to find the best rate.
How Credit Affects Car Insurance Rates by State
Credit's impact on your car insurance varies by state. Some states ban credit scoring entirely. In others, poor credit can push rates up by more than 200%.
States Where Credit Has the BIGGEST Impact:
Montana sees the steepest rate increases for poor credit, up to 252%. Oklahoma follows at 245%, Idaho at 230% and Wyoming at 220%.
States Where Credit Has MODERATE Impact:
Texas allows increases up to 180% for poor credit. Florida caps them at 165% and Georgia at 150%.
States With Limited Credit Use:
Maryland, Oregon and Utah restrict how insurers can use credit scores. In these states, insurers can't deny a policy based on credit alone.
STATES WHERE CREDIT CAN'T BE USED
California, Hawaii, Massachusetts and Michigan prohibit credit-based pricing entirely. Insurers in these states can't factor your credit into your rate.
*These percentages are the maximum allowed increases. Actual rate changes vary by insurer and situation.
Car Insurance for Bad Credit: FAQ
Getting auto insurance with bad credit can be challenging in states that factor credit into premiums.
Why is car insurance based on credit scores?
Insurance companies don't use your actual credit score to set rates. They pull data from your credit report to build their own insurance score, which predicts how likely you are to file a claim. Your credit is one factor. Insurers also weigh your driving record, age and location to set your rate.
Can you get car insurance with a 500 credit score?
Yes, though you'll pay more. Shop with multiple insurers and look for usage-based programs or companies that put less weight on credit scores.
What credit score is needed for good car insurance rates?
A credit score of 670 or higher usually qualifies for standard rates. Scores above 740 often get the best rates. Each insurer has its own credit requirements and weighting system.
Does car insurance build credit?
No, car insurance payments don't directly build credit since most insurers don't report payments to credit bureaus. But missed payments that go to collections can hurt your score.
How often do car insurance companies check credit?
Most insurers check your credit when you first apply and at policy renewal (every six to 12 months). They won't automatically recheck if your credit improves, so you may need to request a review.
Does shopping for car insurance hurt your credit?
No, getting car insurance quotes uses soft credit checks that don't impact your credit score. An insurer may run a hard credit check only when you purchase a policy.
What's the difference between a credit score and insurance score?
Your credit score (like FICO) ranges from 300 to 850 and reflects how creditworthy you are. An insurance score draws from similar data, but each insurer calculates it differently to predict the odds of a claim.
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Best Car Insurance Rates for Bad Credit: Our Review Methodology
Study Overview for the Best Insurers
We used a weighted scoring system and independent data sources to rank insurers across five criteria:
- Customer satisfaction (35%): Tracks service quality at policy setup and during customer contact. Data comes from the National Association of Insurance Commissioners (NAIC) complaint index and J.D. Power studies.
- Affordability (20%): We used Quadrant Information Services data and state insurance department figures to compare premiums across providers.
- Claims (20%): Rates how well insurers handle claims per data from the J.D. Power Claims Study and CRASH Report Card.
- Coverage (20%): We contacted providers directly to assess their standard and add-on coverage options.
- Financial stability (5%): Reflects an insurer's ability to pay claims. Ratings come from AM Best.
Study Overview for the Cheapest Insurers
We used Quadrant Information Services data and state insurance department figures to collect 529,578 quotes from 67 companies in 897 ZIP codes.
Sample Driver Profile
We used a sample driver profile and adjusted it to evaluate factors like age, location and driving history.
- 2012 Toyota Camry LE
- Male driver
- Multiple ages
- Locations across all 50 states
We gathered rate data for full coverage policies, which include:
- Comprehensive and collision coverages: Each carries a $1,000 deductible. Comprehensive covers noncollision incidents. Collision applies to at-fault accidents.
- Liability insurance: Meets state minimum requirements with no deductible.
Since requirements vary by state, we used each state's minimum coverage thresholds to calculate both state and national averages.
See how we built our scoring system in MoneyGeek’s car insurance methodology.
Bad Credit Auto Insurance: Related Articles
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he has produced original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.
Like all MoneyGeek analysts, he draws on independent cost and consumer experience data. No insurance company partnership influences his recommendations.
Fitzpatrick earned his degrees from Johns Hopkins University (M.A. Economics and International Relations) and Boston College (B.A.). He began his career in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.
Sources
- myFICO. "Do Insurance Companies Use Credit Data." Accessed May 15, 2026.
- NAIC. "Credit-Based Insurance Scores." Accessed May 15, 2026.
- National Conference of State Legislatures. "States Consider Limits on Insurers’ Use of Consumer Credit Info." Accessed May 15, 2026.