Cheap Car Insurance for Bad Credit
Geico and Travelers have the cheapest car insurance for bad credit among large companies. Some regional companies like MMG and Westfield have even cheaper rates.
Cheapest car insurance for drivers with bad credit
At $3,409 a year, Geico has the cheapest car insurance for bad credit among large companies. Geico’s rate works out to $284 a month. This is barely cheaper than Travelers’ rate of $285 a month.
USAA is the cheapest large insurance company for bad credit, overall. However, USAA is only available to current and former members of the military and their families.
Cheapest car insurance companies for poor credit
| Company | Annual rate | LendingTree score | |
|---|---|---|---|
 | Geico | $3,409 |  |
 | Travelers | $3,419 |  |
 | Nationwide | $3,533 |  |
 | Progressive | $3,621 |  |
 | Allstate | $4,855 | |
 | USAA* | $2,418 | |
Drivers with bad credit pay an average of $341 a month for car insurance. This is 95% higher than the average rate for good credit of $175 a month.
You often find a cheaper rate for bad credit if you compare car insurance quotes from multiple companies. It’s good to include regional companies in your search. These can be cheaper than large companies like Geico and Travelers.
Cheap regional companies for bad-credit car insurance
MMG has the nation’s cheapest overall car insurance for bad credit at $146 a month. It’s only available in five eastern states
Cheapest regional companies for bad credit
| Company | Annual rate | LendingTree score |
|---|---|---|
| MMG | $1,754 | |
| Westfield | $2,097 | |
| Concord | $2,116 | |
| Country Financial | $2,318 |  |
| Grange | $2,578 | |
| Vermont Mutual | $2,664 | |
| NYCM | $3,157 | |
| Erie | $3,174 | |
Cheapest bad-credit car insurance by state
Each company’s car insurance rates for bad credit vary by state. Geico has the cheapest car insurance for drivers with bad credit in 14 states. Travelers has the cheapest bad-credit car insurance in nine states.
Of states that use credit scores to calculate car insurance quotes, Washington has the cheapest rate for full coverage at $1,899 a year. This is 24% higher than the state’s average rate of $1,534 for drivers with good credit.
Cheapest bad-credit car insurance in your state
| State | Cheapest company | Annual rate |
|---|---|---|
| Alabama | Travelers | $2,974 |
| Alaska | Allstate | $2,432 |
| Arizona | Travelers | $3,066 |
| Arkansas | Alfa | $2,555 |
| California | Geico | $1,486 |
| Colorado | Geico | $3,355 |
| Connecticut | Travelers | $2,328 |
| Delaware | Travelers | $3,736 |
| Florida | UAIC | $2,881 |
| Georgia | Farm Bureau | $1,334 |
| Hawaii | Geico | $829 |
| Idaho | State Farm | $1,300 |
| Illinois | Country Financial | $1,843 |
| Indiana | Travelers | $2,083 |
| Iowa | Progressive | $2,413 |
| Kansas | Travelers | $2,369 |
| Kentucky | Travelers | $3,576 |
| Louisiana | Allstate | $2,978 |
| Maine | Travelers | $1,530 |
| Maryland | Geico | $2,447 |
| Massachusetts | Geico | $1,320 |
| Michigan | Progressive | $1,906 |
| Minnesota | American Family | $3,286 |
| Mississippi | Farm Bureau | $2,731 |
| Missouri | American Family | $2,733 |
| Montana | Geico | $2,927 |
| Nebraska | Geico | $2,532 |
| Nevada | Travelers | $3,269 |
| New Hampshire | Concord | $1,927 |
| New Jersey | Geico | $2,654 |
| New Mexico | Progressive | $2,937 |
| New York | Nationwide | $2,185 |
| North Carolina | Progressive | $823 |
| North Dakota | Geico | $2,447 |
| Ohio | Geico | $1,013 |
| Oklahoma | Farm Bureau | $2,587 |
| Oregon | Country Financial | $2,792 |
| Pennsylvania | Erie | $2,938 |
| Rhode Island | Geico | $4,309 |
| South Carolina | Farm Bureau | $2,804 |
| South Dakota | Geico | $3,385 |
| Tennessee | Farmers | $2,918 |
| Texas | Allstate | $2,024 |
| Utah | Progressive | $2,707 |
| Vermont | Progressive | $2,112 |
| Virginia | Geico | $2,118 |
| Washington | American Family | $1,540 |
| Washington, D.C. | Progressive | $4,246 |
| West Virginia | Westfield | $2,097 |
| Wisconsin | State Farm | $1,465 |
| Wyoming | Geico | $1,687 |
Best car insurance companies for bad credit
Geico, Travelers and Country Financial are the best car insurance companies for drivers with bad credit.
All three companies have a good complaint rating
| Company | Annual rate for bad credit | Satisfaction rating*** | Complaint rating**** | LendingTree score |
|---|---|---|---|---|
| Travelers | $3,419 | 616 | 0.4 | |
| Country Financial | $2,318 | 655 | 0.3 | |
| Geico | $3,409 | 637 | 0.7 | |
Best large company for bad credit: Travelers
Travelers is only slightly more expensive than Geico and offers more coverage options. This includes gap insurance
Travelers’ 0.4 complaint rating means it has less than half as many complaints as average for its size. This is excellent.
PROS
- Charges 16% less than the average for bad credit
- Excellent complaint rating
- Offers gap insurance
CONS
- Customer satisfaction rating is worse than average
Best regional company for bad credit: Country Financial
Country Financial’s rates and ratings make it a good choice for drivers with any credit rating. The discounts it offers to teachers and first responders make it even more affordable if you’re in one of these professions.
Country Financial also gives you a discount for taking a defensive driver class, regardless of your age. These and its other discounts are particularly valuable when you have bad credit.
PROS
- Charges 43% less than the U.S. average for bad credit
- Discounts for teachers and first responders
- Good satisfaction rating
CONS
- Only available in 19 states
- Does not offer gap insurance
Best rates for bad credit: Geico
Geico has the cheapest rates for most drivers with bad credit in 14 states, including New Jersey, Ohio and Virginia. Its convenient shopping platform offers quotes within minutes. This makes it easy to see how Geico’s rates compare to the other quotes you get.
Geico’s complaint rating is not as good as Travelers’ and Country Financial’s scores, but it’s still better than average.
PROS
- Cheapest rates for bad credit in 14 states
- Good complaint rating
- Discounts for federal employees
- Military discounts for active duty, retired, reservists and guard members
CONS
- Satisfaction rating is worse than average
- Does not offer gap insurance
Why does my credit score affect my car insurance?
Insurance industry research has shown links between a driver’s credit history and risk. Drivers with poor credit are more likely to have an insurance claim than drivers with good credit. Insurance companies generally charge higher rates to riskier customers.
In most states, your credit-based insurance score (CBIS) helps determine your car insurance rate. It’s based on factors like your payment history and outstanding debts, but not your income. Other factors that affect your CBIS include:
- Recent credit applications
- The length of time you’ve had credit
- Your credit mix, including credit cards and loans
States have various regulations on how insurance companies can use your credit. In some states, an insurance company can’t deny your application based solely on your credit. Some states won’t let your existing insurance company raise your rate if your credit gets worse.
These four states ban credit-based insurance scoring:
- California
- Hawaii
- Massachusetts
- Michigan
How do I improve my credit for insurance?
Avoiding late payments and paying down debt are good ways to improve your credit score for insurance. It’s also good to avoid applying for a loan or other credit product right before you shop for insurance, if possible. Routinely checking your credit reports can help you spot errors on your credit report and correct them.
Shopping for insurance won’t hurt your credit score. Insurance companies only use “soft inquiries” to check your credit.
The steps you take to improve your CBIS may not take effect right away. In the meantime, there are other things you can do to lower your car insurance rates.
How to save on car insurance with bad credit
Shopping around, exploring car insurance discounts and increasing your deductibles can help you save on car insurance with bad credit.
Why shop around?
Car insurance companies look at more than just your credit to determine your rate. Some of these other factors include your age, location, driving record and the type of car you drive.
Each company weighs these factors differently and offers different discounts. Some companies place less emphasis on your credit score than others. Comparing quotes helps you find the company with the cheapest rates for your individual circumstances.
Which car insurance discounts are good for bad credit?
Bundling and safe-driver discounts are good ways to save on car insurance with bad credit. Most companies give you a good discount for bundling your car insurance with a home or renters policy. Several also give you a big discount for joining their safe-driver programs.
These safe-driver programs usually use a smartphone app to monitor your driving. You get a discount just for signing up. If you drive safely enough, you get subsequent discounts each time you renew.
Why choose high deductibles?
If you have full coverage
Frequently asked questions
Root, CURE and Dillo are among the auto insurance companies that don’t check your credit. Root is available in 34 states. CURE is available in Michigan, New Jersey and Pennsylvania. Dillo is only available in Texas.
Most other insurance companies check your credit, except in states that ban the practice.
Yes. In most states, car insurance companies use a credit score to see how risky you may be to insure. The credit score insurance companies use is based on factors like your payment history and the amounts you owe. It’s different from your credit score for loan applications.
Getting a car insurance quote does not affect your credit score. However, failing to pay insurance bills on time usually does hurt your credit score.
Methodology
LendingTree uses insurance rate data from Quadrant Information Services using publicly sourced insurance company filings. Rates are based on an analysis of hundreds of thousands of car insurance quotes for a typical driver. Prices are shown for comparative purposes only. Your own rates may be different.
Unless noted otherwise, quotes are for a full-coverage policy for a 30-year-old man with good credit and a clean driving record who drives a 2015 Honda Civic EX.
Full-coverage policies include collision, comprehensive and liability coverage:
- Bodily injury liability: $50,000 per person, $100,000 per accident
- Property damage liability: $25,000
- Uninsured / underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Personal injury protection: minimum limits, where required by law
- Collision: $500 deductible
- Comprehensive: $500 deductible
—
Our team of insurance experts rated insurance companies based on several categories. These categories include average rates, discounts, coverage options, third-party customer service ratings and app/website experience. We weighted these categories based on what customers value in an insurance company.
For third-party customer service ratings, we included complaint index scores from the National Association of Insurance Commissioners (NAIC) and financial strength ratings from AM Best. NAIC complaint index scores are used to determine how satisfied customers are with their claims, while financial strength ratings from AM Best reflect the ability to pay out claims.