Car insurance for drivers with bad credit

Does credit score affect car insurance?

Credit score affects car insurance rates in almost every state. California, Hawaii, Washington and Massachusetts all ban the use of credit in car insurance pricing. If you have good or excellent credit, you can expect to pay less for car insurance, while a fair or poor credit score means you'll pay more. Insurance.com's 2026 data show that drivers with poor credit pay 104% more on average than drivers with good credit.

Statistically, drivers with poor credit history are more likely to file a claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing.. Car insurance companies charge higher car insurance premiums to these drivers to cover the increased risk of insuring them.

In addition, your credit may affect the size of the down payment an insurance company requires and which payment options you are offered.

Auto insurance for drivers with poor credit by state

The cheapest state for car insurance with bad credit is Idaho at $2,881 a year on average. It's followed by Ohio at $3,339 and Wyoming at $3,347.

On the other side, the most expensive state for drivers with bad credit is Michigan at an average of $11,664 a year, followed by Washington, D.C., at $9,383 a year and New Jersey at $8,326.

The amount your rate is hiked also depends on your driving record, where you live, your car insurance company and state insurance laws, among other factors. But to get an idea of how much more you pay as a driver with bad credit, take a look at the table below.

Average cost of car insurance with poor credit by state
State	Average annual rate, good credit	Average annual rate, poor credit	% difference	$ difference
Alaska	$2,167	$4,385	102%	$2,218
Alabama	$2,116	$3,778	79%	$1,662
Arkansas	$2,942	$5,364	82%	$2,422
Arizona	$2,420	$3,933	63%	$1,513
Colorado	$3,181	$7,634	140%	$4,453
Connecticut	$2,742	$6,157	125%	$3,415
Washington, D.C.	$3,465	$9,383	171%	$5,918
Delaware	$3,157	$5,591	77%	$2,434
Florida	$3,916	$8,249	111%	$4,333
Georgia	$2,503	$4,529	81%	$2,026
Iowa	$2,460	$4,252	73%	$1,792
Idaho	$1,901	$2,881	52%	$980
Illinois	$1,938	$3,702	91%	$1,764
Indiana	$1,894	$3,459	83%	$1,565
Kansas	$2,496	$5,515	121%	$3,019
Kentucky	$2,624	$6,308	140%	$3,684
Louisiana	$3,999	$8,148	104%	$4,149
Maryland	$1,999	$4,177	109%	$2,178
Maine	$1,808	$4,141	129%	$2,333
Michigan	$3,964	$11,664	194%	$7,700
Minnesota	$2,591	$6,949	168%	$4,358
Missouri	$2,151	$4,635	115%	$2,484
Mississippi	$2,397	$4,229	76%	$1,832
Montana	$2,476	$4,979	101%	$2,503
North Carolina	$2,638	$4,756	80%	$2,118
North Dakota	$2,439	$4,917	102%	$2,478
Nebraska	$2,095	$3,842	83%	$1,747
New Hampshire	$1,689	$3,462	105%	$1,773
New Jersey	$3,122	$8,326	167%	$5,204
New Mexico	$2,577	$4,015	56%	$1,438
Nevada	$3,963	$8,223	107%	$4,260
New York	$2,596	$6,854	164%	$4,258
Ohio	$1,783	$3,339	87%	$1,556
Oklahoma	$2,993	$4,675	56%	$1,682
Oregon	$2,048	$4,174	104%	$2,126
Pennsylvania	$2,327	$5,474	135%	$3,147
Rhode Island	$2,878	$5,858	104%	$2,980
South Carolina	$2,417	$4,797	98%	$2,380
South Dakota	$2,575	$5,386	109%	$2,811
Tennessee	$2,235	$3,945	76%	$1,710
Texas	$3,106	$6,774	118%	$3,668
Utah	$2,356	$4,481	90%	$2,125
Virginia	$1,835	$3,803	107%	$1,968
Vermont	$1,660	$3,347	102%	$1,687
Wisconsin	$2,343	$4,450	90%	$2,107
West Virginia	$2,415	$4,567	89%	$2,152
Wyoming	$2,061	$3,347	62%	$1,286

Cheapest car insurance for drivers with bad credit by company

GEICO is the cheapest car insurance company for drivers with bad credit, at an average of $3,555 a year, unless you are eligible for USAA (military, veterans, and their families), which is cheaper at $3,069 a year.

Cheapest car insurance companies for drivers with poor credit
Company	Rate with good credit	Rate with poor credit	$ increase	% increase
GEICO	$2,159	$3,555	$1,396	65%
Nationwide	$2,524	$4,198	$1,674	66%
Travelers	$1,962	$4,583	$2,621	134%
Progressive	$2,569	$5,182	$2,613	102%
Allstate	$3,159	$5,336	$2,177	69%
Farmers	$3,207	$5,695	$2,488	78%
State Farm	$2,875	$12,707	$9,832	342%
USAA	$1,628	$3,069	$1,441	88%

Best auto insurance companies for drivers with poor credit

GEICO is the best car insurance company for drivers with bad credit with 4.64 stars out of 5, according to an Insurance.com 2026 analysis of carriers based on rates, AM Best financial stability ratings and National Association of Insurance Commissioners (NAIC) customer complaints.

Finding affordable car insurance is important for drivers with poor credit scores, but it's also important to find a company you can trust, so we included two important auto insurance company reputation metrics in our ranking.

Best car insurance companies for drivers with bad credit
Company	NAIC complaint ratio	AM Best	Survey score	Avg, annual premium, poor credit	Overall score
Allstate	1.2	A+	4.35	$5,336	4.19
American Family	0.67	A	4.27	$4,586	4.36
Amica	0.59	A+	4.18	$7,739	4.16
Auto Club Enterprises (AAA)	1.29	A+	4.49	$8,360	3.95
Auto Club Group (AAA)	0.68	A	4.39	$3,680	4.48
Auto-Owners	0.44	A+	4.31	$6,133	4.41
CSAA Insurance (AAA)	1.02	A	4.37	$4,445	4.27
Erie Insurance	0.77	A	4.5	$4,688	4.4
Farmers	1.24	A	4.31	$5,695	4.05
GEICO	0.6	A++	4.26	$3,555	4.64
Mercury Insurance	1.07	A	4.46	$5,171	4.22
Nationwide	0.64	A	4.41	$4,198	4.46
Progressive	0.6	A+	4.15	$5,182	4.37
State Farm	0.87	A+	4.37	$12,707	3.69
Travelers	0.62	A++	4.36	$4,583	4.58

Car insurance rates for drivers with poor credit by city

While the use of credit for car insurance rates is determined at the state level, your city will impact how much you pay. Below we've gathered rates for drivers with bad credit for major cities in each state.

City	Average annual rate, poor credit	Average monthly rate, poor credit
Anchorage	$4,646	$387
Bethel	$4,373	$364
Fairbanks	$4,709	$392
Homer	$4,389	$366
Juneau	$3,789	$316
Kenai	$4,286	$357
Ketchikan	$3,833	$319
Palmer	$4,903	$409
Sitka	$3,815	$318
Wasilla	$4,400	$367

Does bankruptcy affect car insurance?

It can, but how much depends on your credit rating before the bankruptcy. If you have insurance and continue making your payments, you're less likely to see a rate increase at renewal, but some companies will check your credit once a year. A lower credit rating may lead to a rate increase.

Any type of bankruptcy filing will hurt your credit rating and will remain on your record for up to 10 years. During that time, car insurance companies that use credit as part of their risk assessment may increase your rate or may decline to offer you the lowest rates available.

How to improve your car insurance credit score

To improve your credit-based insurance score and get lower premiums, pay your bills on time, avoid high credit card balances and unnecessary accounts, establish and maintain good credit and review your credit report for errors.

Pay your bills on time and keep all your accounts in good standing. Late payments and collections will hurt you.
Keep your credit card balances low. The insurance score considers the amount you owe in relation to your credit limits. Avoid maxing out your credit cards.
Don't open unnecessary credit accounts. Too many new accounts signal trouble. Only open the credit accounts you really need.
Establish and maintain credit. The longer you maintain a decent credit history, the better. Having little or no credit history will lower your score.
Make sure your credit report is accurate. A mistake could ding your score. You have the right to get a free copy of your credit report each year.

If you're struggling to pay bills and have trouble keeping up with credit accounts, get professional finance advice. You can find free or low-cost help through the nonprofit National Foundation for Credit Counseling.

How to save on car insurance if you have bad credit

The number one thing you can do to save on car insurance with bad credit is to shop around. No two car insurance companies will have identical prices for the same policy. The difference in what you pay from one carrierAn insurance carrier is the company that provides your car insurance policy and pays claims. to the next can vary by hundreds of dollars, sometimes more. So it pays to compare quotes even if you have bad credit.

You can also consider raising your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim., which will lower your rates; just make sure you can handle that deductible if you need to pay it.

FAQ: Car insurance for drivers with bad credit

What is no credit check car insurance?

No-credit-check car insurance means the carrier will issue a policy without a credit check. In many cases, these are non-standard carriers (companies that will write car insurance for high-risk drivers including those with bad credit), so the rates may be higher.

What is the difference between credit-based insurance score and credit score?

Credit-based insurance scores and credit scores use the same sources of information, but evaluate different factors. Your credit score, or FICO score, impacts things like loan applications, and is more focused on your financial history. Credit-based insurance scores use a more limited collection of information to evaluate the risk of filing a claim.

Why does credit score affect car insurance rates?

Poor credit has been shown to increase the risk of a claim. As a result, most states allow it to be used when calculating insurance rates.

Do insurance companies run your credit for a quote?

No, most companies do not run your credit when quoting car insurance rates. This requires your Social Security number, which is not usually requested when running a quote, especially online. Some carriers or insurance agents may request it to ensure more accurate quotes, but, in general, your credit will not be run until you decide to accept the policy. A credit check for insurance is a soft pull, which means it will not affect your credit score.