Car Insurance for Drivers with Bad Credit

Drivers with poor credit pay 69% more for auto insurance than drivers with average credit
Cheapest car insurance with bad credit: GEICO

Use The Zebra to get insurance quotes with bad credit from GEICO, Nationwide, Progressive and Allstate (+100 other companies)

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The Zebra partners with some of the companies we write about. However, our content is written and reviewed by an independent team of editors and licensed agents. Reference our data methodology and learn more about how we make money.

By Renata Balasco

Updated September 8, 2026

Reviewed By Kristine Lee

Edited By Beth Swanson

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Best cheap insurance with bad credit
Insurance rates by credit score
Which car insurance companies don’t use your credit score?
Why does credit score matter?
Rates by location
How to improve your credit
FAQs

Best cheap car insurance for drivers with bad credit

Drivers with poor credit typically pay about 69% more for auto insurance, according to our data.^[1] That’s because most insurers use credit as an indicator of risk, and most states allow it when setting rates.

Looking for cheap car insurance with less-than-perfect credit? You’re not alone: about 11% of The Zebra’s customers have poor credit.^[2] Affordable coverage is still out there, so we’ve rounded up the top insurers for drivers with bad credit.

GEICO

GEICO offers the lowest monthly premiums for driver with poor credit

Nationwide

Nationwide is the second-cheapest insurer for drivers with poor credit

USAA

For members of the military and their families, USAA offers competitive rates

Car Insurance Rates with Bad Credit (300-579)

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Company	Avg. 6 Mo. Premium	Avg. Monthly Premium
GEICO	$1,562	$260
Nationwide	$1,878	$313
USAA	$1,916	$319
Farmers	$2,030	$338
Progressive	$2,485	$414
Allstate	$2,683	$447
State Farm	$6,022	$1,004

Source: The Zebra

The above rates reflect a full coverage auto insurance policy.

The Zebra’s Dynamic Insurance Rating Tool data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.

Find an affordable policy, even with poor credit.

Insurance rates by credit score

Reference the table below to see the degree to which your credit score influences how much you pay for an auto insurance policy. Or, enter your ZIP code above to get personalized quotes in minutes.

Average Monthly Auto Insurance Rates by Credit Tier and Company

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Company

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Source: The Zebra

Which car insurance companies don’t use credit score?

In all but four states, major car insurance companies like GEICO, Progressive and State Farm factor in your credit score when giving you a quote. Some smaller, regional insurers skip credit checks, though their coverage options (and available online information) can be limited. These include:

CURE Auto Insurance: Available in New Jersey, Pennsylvania, and Michigan.
Dillo Insurance: Available in Texas.

While it's challenging to find companies that don't use credit score in insurance rating, it's important to note that some states have banned the use of credit as a rating factor. If you live in California, Hawaii, Massachusetts, or Michigan, you're in luck— insurance companies will not check credit scores for drivers in these locales.

Which Car Insurance Companies Do Not Use Credit Scores?

Discover which insurance companies don't use credit scores, why most do and how it impacts you, and explore options for drivers with bad or no credit.

In most parts of the U.S., auto insurance companies will consider your credit report when setting your car insurance rates. This may make finding cheap car insurance more of a challenge, but there are ways to lower your rate while remaining insured.

Look for discounts

Individually, discounts on car insurance tend to be small. But if you qualify for multiple discounts and stack them, it can lead to some not-insignificant savings.

File claims wisely

Being smart with your claims means you shouldn't file a claim unless the damages to your vehicle are greater than the rate increase you might receive in return.

Choose the right coverage

Liability-only coverage will always be your cheapest option— but you can't opt for this if your car is leased or financed due to restrictions. If your vehicle is paid off and worth less than $4,000, you can drop collision coverage and potentially your comprehensive, though understand that minimum coverage means you're responsible for paying for damages out of pocket.

Shop around for the right insurance company

Our best advice for keeping premiums low in every scenario is shopping around every 6 months. For drivers with bad credit, don't be afraid to consider non-standard companies.

Erick Sosa, licensed insurance agent and customer service manager

Agent insight:

"My best advice for those with poor credit is to just get started: buy a policy and make sure it stays active and paid. When you're first insured with a low credit score your prices will be higher than someone with good credit. However, staying consistently insured (without accidents or tickets) will help offset the extra expense because insurance companies will typically give substantial discounts to those with at least six months of continuous coverage."

Erick Sosa — Licensed insurance professional at The Zebra

Why does credit score and history affect car insurance?

Insurance companies use your credit score, along with factors like your age, gender and location, to help predict risk. Drivers with lower credit scores tend to file more claims, and those claims often cost insurers more. As a result, drivers with higher credit scores generally cost less to insure and in turn, pay lower premiums. Check out our video for more details:

Can I be denied coverage because of my credit?

Yes. Poor credit can contribute to an insurer denying coverage, though it’s usually not the only factor. Your driving record, experience, location and vehicle can also play a role. If you’re denied by multiple insurers, high-risk coverage may be an option.

This Insurance Information Institute resource offers advice on finding car insurance when you've been denied.

Rates for drivers with bad credit by location

Below is a state-by-state breakdown of how much a poor credit report can impact your car insurance premium. If you have bad credit, you can expect to pay about 70% more in premiums than a driver with average credit would.

Click on your state below to learn more.

Average monthly premium by state for poor credit

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Source: The Zebra

California, Hawaii, Massachusetts, and Michigan have banned the use of credit as a rating factor.

Choose a car insurance company by comparing rates side-by-side.

How to improve your credit score

As we've mentioned, your credit score isn't the only factor that goes into your car insurance rate. But it will likely be an important part of the equation. Improving your credit score takes time, but there are things you can do to help it along.^[2]

Build credit thoughtfully

Start building credit early, but only apply for what you need. A longer history of responsible credit use can help your score, while too many applications in a short period can hurt it.

Make payments on time

This is key — make any payments you have on time, every month. Setting up automatic payments can make this easy so you don't forget.

Don't max out your credit

Keep balances low, and pay them off each month if you can.

Check your credit reports yearly

Review your reports regularly for fraudulent activity, errors or other issues that could affect your credit.

Frequently asked questions

What is the cheapest car insurance with bad credit?

The most affordable auto insurance for drivers with bad credit is from GEICO, Nationwide, or USAA, according to our research. Individual rating factors will vary, so it's important to compare quotes from multiple companies to find the best fit for you, but these insurance companies will give you a great starting place if you have less-than-great credit.

Can you be denied auto insurance coverage due to your credit history?

Yes, insurance companies can deny coverage at their discretion. A denial may not be strictly based on credit (especially in states where this is prohibited) and will often involve other factors like driving history or prior claims, but it is a very important factor in most locations.

Can you get insurance with a bad credit score?

Yes, but lower scores equate to higher risk for insurers, meaning higher premium costs. Certain companies offer high-risk insurance options, but these are usually much more expensive for folks with lower credit ratings. Insurance companies determine rates from a variety of factors, as well, not just your credit score. No specific credit score will automatically make you eligible for auto insurance from every company. Still, the higher the score, the better luck finding affordable options.

Which car insurance company does not check credit?

Most insurance companies consider your credit when calculating your rate. CURE and Dillo, available in select states, advertise that they don’t. Some states also prohibit insurers from using credit as a rating factor, so your credit won’t affect your rate in California, Massachusetts, Hawaii, or Michigan.

Does GEICO check your credit score?

Yes. Unless you live in one of the four states that has banned the use of credit in auto insurance rating (California, Hawaii, Massachusetts, or Michigan), GEICO and all other insurance companies will check your credit score. The good news is, they only perform a soft credit check that won't affect your score.

Sources

Data Methodology. The Zebra’s Dynamic Insurance Rating Tool

Data Methodology. The Zebra’s Dynamic Insurance Rating Tool
Anonymized User Surveys. The Zebra

Anonymized User Surveys. The Zebra
Insurance Information Institute

Insurance Information Institute
Consumer Financial Protection Bureau

Consumer Financial Protection Bureau

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.