How to Compare Car Insurance Rates 2025
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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

Cheap Car Insurance for Bad Credit

Updated on:
Content was accurate at the time of publication.
Geico and Travelers have the cheapest car insurance for bad credit among large companies. Regional companies like MMG and Westfield have cheaper rates, but they aren’t available everywhere.

Find the Cheapest Car Insurance Quotes in Your Area

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 drivers with poor credit

CompanyAnnual rateLendingTree score
geico logoGeico$3,4093.5 stars
travelers logoTravelers$3,4194.5 stars
nationwide logoNationwide$3,5333 stars
progressive logoProgressive$3,6214 stars
allstate logoAllstate$4,8553 stars
usaa logoUSAA*$2,4184 stars

*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.

Find the Cheapest Car Insurance Quotes in Your Area

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

CompanyAnnual rateLendingTree score
MMG$1,7544 stars
Westfield$2,0973 stars
Concord$2,1164 stars
Country Financial$2,3185 stars
Grange$2,5783 stars
Vermont Mutual$2,6643 stars
NYCM$3,1574.5 stars
Erie$3,1744 stars

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

StateCheapest companyAnnual rate
AlabamaTravelers$2,974
AlaskaAllstate$2,432
ArizonaTravelers$3,066
ArkansasAlfa$2,555
CaliforniaGeico$1,486
ColoradoGeico$3,355
ConnecticutTravelers$2,328
DelawareTravelers$3,736
FloridaUAIC$2,881
GeorgiaFarm Bureau$1,334
HawaiiGeico$829
IdahoState Farm$1,300
IllinoisCountry Financial$1,843
IndianaTravelers$2,083
IowaProgressive$2,413
KansasTravelers$2,369
KentuckyTravelers$3,576
LouisianaAllstate$2,978
MaineTravelers$1,530
MarylandGeico$2,447
MassachusettsGeico$1,320
MichiganProgressive$1,906
MinnesotaAmerican Family$3,286
MississippiFarm Bureau$2,731
MissouriAmerican Family$2,733
MontanaGeico$2,927
NebraskaGeico$2,532
NevadaTravelers$3,269
New HampshireConcord$1,927
New JerseyGeico$2,654
New MexicoProgressive$2,937
New YorkNationwide$2,185
North CarolinaProgressive$823
North DakotaGeico$2,447
OhioGeico$1,013
OklahomaFarm Bureau$2,587
OregonCountry Financial$2,792
PennsylvaniaErie$2,938
Rhode IslandGeico$4,309
South CarolinaFarm Bureau$2,804
South DakotaGeico$3,385
TennesseeFarmers$2,918
TexasAllstate$2,024
UtahProgressive$2,707
VermontProgressive$2,112
VirginiaGeico$2,118
WashingtonAmerican Family$1,540
Washington, D.C.Progressive$4,246
West VirginiaWestfield$2,097
WisconsinState Farm$1,465
WyomingGeico$1,687

**State ban on credit scoring for car insurance.

Geico, Travelers and Country Financial are the best car insurance companies for drivers with 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.

CompanyAnnual rate for bad creditSatisfaction rating***Complaint rating****LendingTree score
Travelers$3,4196160.44.5 stars
Country Financial$2,3186550.35 stars
Geico$3,4096370.73.5 stars

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 logo
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 logo
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 logo
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

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
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.

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 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.

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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.