Updated: July 4, 2025
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Progressive is the best car insurance company for drivers with bad credit, followed by Travelers as second best based on MoneyGeek's scoring.
Drivers with bad credit pay $51 more per month than those with good credit. Based on MoneyGeek's analysis of 529,578 quotes, poor credit can increase your annual insurance costs by over $1,500.
Your credit score affects car insurance rates because companies use it to predict if you'll file claims and pay your bills on time. People with lower scores often pay more because insurance companies see them as more risky.
GEICO offers the best affordable car insurance for drivers with bad credit, averaging $1,150 annually or $96 monthly. While bad credit typically results in higher premiums due to greater claim risks, there are still options.
The table below provides average monthly and annual premiums 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 |
An affordable premium is important, but choosing a reputable insurer with excellent customer service is equally vital. For drivers with poor credit, Progressive is the best car insurance provider, followed by Travelers. However, the best option depends on your needs.
Nationwide offers competitive rates and comprehensive coverage for drivers with bad credit. It provides accident forgiveness to prevent rate increases after a first at-fault accident and offers roadside assistance for car troubles. The company provides various discount opportunities, including bundling discounts for combining auto and home insurance policies.
Many insurance companies, including Nationwide, will reconsider your rates when factors that influence pricing change. Be prepared to provide documentation of your improved credit score. The company may not automatically check your credit regularly, so being proactive can save you money if your score has increased.
For drivers with bad credit, Travelers provides a balance of robust coverage and cost-saving opportunities. Its new car replacement coverage replaces your totaled vehicle with a brand-new one of the same make and model. Travelers also has an accident forgiveness program to keep rates steady after your first accident. Discounts like safe driving for accident-free drivers and good student for young drivers with good grades help policyholders save.
Travelers uses your credit score when setting your insurance rates, but they won't automatically check if your score improves - you need to call them and ask for a review. When they look at your policy again, they'll consider your better credit score along with your driving record and claims history.
Credit history, including credit scores, affects insurance premiums in most states. Higher scores and strong credit histories often lead to lower rates, while lower scores may result in higher costs.
The table below shows how car insurance rates vary by credit score.
| Excellent | $58 | $697 |
| Good | $62 | $740 |
| Fair | $89 | $1,070 |
| Below Fair | $112 | $1,340 |
| Poor | $147 | $1,759 |
| 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 |
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 Insurance, Farm Bureau, and Westfield Insurance 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 |
*Note: The cheapest rates depend on factors like your driving record, age and location. Always compare quotes from multiple insurers in your area to find the best rate.
Credit's impact on your car insurance varies significantly by state. While some states prohibit using credit scores entirely, others allow insurers to increase rates by over 200% based on poor credit.
States Where Credit Has the BIGGEST Impact:
States Where Credit Has MODERATE Impact:
States with Limited Credit Use:
Note: Percentages represent maximum allowed increases. Actual increases vary by insurer and individual circumstances.
Choosing the best car insurance involves considering factors like credit history and comparing policies. This guide can help you make an informed decision.
Below are some tips to help you find the best car insurance, even with poor credit:
Assess how much insurance you need to avoid overpaying for unnecessary coverage. Changes in your circumstances might mean a lower risk of claims. Review your situation carefully to ensure you get the right coverage level.
Full coverage insurance includes comprehensive and collision coverages, each with a deductible you must pay before your insurer covers repair or replacement costs. Choosing a higher deductible lowers your premiums, helping you save in the long term by covering more of the repair costs in case of an accident or non-collision damage.
A car's actual cash value directly affects premiums. Higher-value vehicles typically have higher premiums, while insuring a low-value car with lower repair and replacement costs can lead to lower rates.
Comparing quotes from different insurers helps you find the best price and coverage. Get multiple quotes to choose the option that offers the best value for your needs.
Insurers consider your age, driving history and car type, along with your credit-based insurance score, to determine premiums. Use MoneyGeek's calculator to compare quotes and get accurate estimates for your car insurance.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Jul 05, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 | 83 /of 100 | $118 | |
| 4 | 83 /of 100 | $129 | |
| 5 | 79 /of 100 | $133 | |
| 6 | 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.
In states where credit-based insurance scores are allowed, FICO reports that 95% of personal insurers use them to assess applicants' risk. Your numerical score places you in one of these categories:
Actuarial data shows that people with lower credit scores are more likely to file claims. Insurers use these scores to evaluate risk, except in states that ban the practice. Drivers with poor credit are considered high-risk and often pay higher premiums, ensuring that good drivers don’t subsidize bad ones.
Just because your credit rating is low doesn’t mean you can’t shop for the best auto insurance. Here are several ways to lower your insurance rates:
Most insurance companies provide various discounts to help customers save. Bundling policies, such as auto and homeowners or renters insurance, can significantly lower your annual costs. A multi-vehicle discount is another common option from national and regional insurers. Other ways to reduce your premiums include good driving discounts, employer discounts and loyalty discounts.
Many insurance companies offer discounts to policyholders who pay their entire premium upfront rather than in monthly or quarterly installments.
If you have poor credit, improving your credit score is one of the best ways to lower your insurance premiums. Here are some steps to help boost your score:
If your credit score is low due to late payments, setting up automatic payments can help ensure bills are paid on time. This simple step can improve your payment history and boost your credit score over time.
Paying off your full balance each month is one of the most effective ways to lower your credit utilization. It also helps you avoid interest charges, saving money in the long run.
Many credit agencies let you add on-time rent and utility payments to your credit report. Contact the agencies directly to learn how to ensure your positive payment history benefits your credit score.
Each credit application results in a hard inquiry on your credit report, which can temporarily lower your score. To improve your credit, avoid opening new accounts for a while to minimize hard inquiries.
You’re entitled to a free credit report from the major U.S. credit bureaus: Experian, Equifax and TransUnion. Reviewing these reports is essential to ensure 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.
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, but local providers in your area may offer this option. Also, some states — California, Hawaii, Massachusetts and Michigan — prohibit insurers from using credit data to set rates.
Getting a car insurance quote doesn't affect your credit score. Insurers typically use a soft credit check when you're just getting quotes, which doesn't impact your credit.
Drivers with poor credit often pay higher car insurance rates. To save, regularly compare quotes from different providers to find affordable options. This article explains how credit scores impact premiums, highlights the cheapest providers and offers tips to help you find rates as low as $15 per month in some states.
Securing auto insurance with bad credit can be challenging in states that factor credit into premiums. Check our FAQ for tips and insights on finding coverage for drivers with poor credit.
A bad credit score can lead to higher car insurance costs. Actuarial data shows drivers with poor credit file more claims on average, causing them to pay more than twice as much as those with excellent credit scores.
Most insurers check credit history to create a credit-based insurance score. However, Massachusetts, California, Michigan, and Hawaii prohibit using credit to set premiums, so insurers in these states offer no-credit-check car insurance. Drivers with poor credit may also consider usage-based telematics programs, which often don't factor in credit when determining rates.
Car insurance costs aren't directly based on your credit score. Instead, insurers use credit factors to create a proprietary credit-based insurance score, which helps predict the likelihood of filing claims. This score is just one of many factors insurers consider, and each company weighs these factors differently. While your credit — whether excellent, good, fair, or poor — can influence your rate, it's not the sole factor.
According to MoneyGeek's analysis, GEICO offers the cheapest car insurance for drivers with bad credit at $96 per month. Travelers ($118/month) and Nationwide ($122/month) also provide competitive rates for bad credit drivers.
Drivers with poor credit pay an average of $85 more per month than those with good credit. This translates to over $1,500 more per year. In some states, poor credit can increase rates by up to 252%.
Yes, you can get car insurance with a 500 credit score, though you'll pay higher premiums. Consider usage-based insurance programs, shop with multiple insurers, or look into companies that don't heavily weigh credit scores in their pricing.
A credit score of 670 or higher typically qualifies for good car insurance rates. Excellent rates usually require a score of 740 or above. Each insurer has different credit score requirements and weighting systems.
No, car insurance payments don't directly build credit since most insurers don't report payments to credit bureaus. However, missed payments that go to collections can hurt your credit score.
Most insurers check credit when you first apply and at policy renewal (typically every 6-12 months). However, they won't automatically recheck if your credit improves, so you may need to request a review.
Four states prohibit using credit scores for car insurance: California, Hawaii, Massachusetts, and Michigan. Maryland, Oregon, and Utah have restrictions on how credit can be used.
Yes, but options are limited. Some insurers like CURE and Dillo don't use credit scores. Usage-based insurance programs also focus more on driving behavior than credit history.
No, getting car insurance quotes uses soft credit checks that don't impact your credit score. Only when you actually purchase a policy might an insurer do a hard credit check.
To get cheap car insurance with bad credit: shop with multiple insurers, consider usage-based programs, raise your deductibles, bundle policies, maintain continuous coverage, and work on improving your credit score.
Your credit score (like FICO) ranges from 300-850 and measures creditworthiness. An insurance score uses credit information but is calculated differently by each insurer to predict claim likelihood.
Bad credit can affect your car insurance rates for years, but the impact lessens as your credit improves. Most negative credit events (like missed payments) have less impact after 2-3 years and fall off credit reports after 7 years.
Study Overview for the Best Insurers
To identify the best car insurance providers for drivers with bad credit, we analyzed data from independent sources using a weighted scoring system based on the following criteria:
Study Overview for the Cheapest Insurers
To calculate average car insurance costs and rate comparisons, we collected 529,578 quotes from 67 companies across 897 ZIP codes. Data came from Quadrant Information Services and state insurance departments.
Sample Driver Profile
We used a sample driver profile and adjusted it to evaluate various factors like age, location and driving history.
Policies, Coverages and Deductibles
We gathered rate data for full coverage policies, which include:
Coverage requirements vary by state. We analyzed rates based on state-specific minimum requirements to calculate state and national averages.
Learn more about MoneyGeek’s car insurance methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
