Cheap Car Insurance for Bad Credit
Cheap car insurance for drivers with bad credit
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 drivers with 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 | ![]() |
*USAA is only available to the military community and their families.
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 Available in Maine, New Hampshire, Pennsylvania, Vermont and Virginia. . Westfield, available in 10 states Available in Illinois, Indiana, Iowa, Kentucky, Minnesota, Ohio, Pennsylvania, Tennessee, West Virginia and Wisconsin. , is the next-cheapest company at $175 a month.
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
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 |
**State ban on credit scoring for car insurance.
Best car insurance companies for bad credit
All three companies have a good complaint rating NAIC compares companies on confirmed complaints by size. A complaint is confirmed when it leads to a finding of fault. from the National Association of Insurance Commissioners (NAIC). Country Financial also has a good satisfaction rating J.D. Power’s scores are based on customer surveys rating insurance companies on price, coverage options and other factors. from J.D. Power.
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 | ![]() |
Sources: ***J.D. Power 2024 U.S.Auto Insurance Study (higher scores are better, 644 is average); ****NAIC complaint index (lower scores are better, 1.0 is average)
Best large company for bad credit: Travelers

Travelers is only slightly more expensive than Geico and offers more coverage options. This includes gap insurance Gap insurance covers the difference between your car’s value and your loan balance, if your car is stolen or totaled in an accident. . You may need this if you owe more for your car than it’s worth.
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?
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?
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
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 Full coverage includes collision and comprehensive. These combine to cover your car for theft and damage. , you can usually lower your rate by raising your collision and comprehensive deductibles These are your out-of-pockets costs for collision and comprehensive claims. If another driver damages your car, their property damage liability covers your repairs. . The only downside to this is higher out-of-pocket costs, if you ever have a collision or comprehensive claim. You can ask for multiple deductible options with your quotes.
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.