Best Full Coverage Auto Insurance - Car insurance is much more expensive for drivers with bad credit than for drivers with good or excellent credit. One analysis found that auto insurance quotes for drivers with bad credit were 66% higher than those for drivers with good credit.
Assuming you don't live in one of the few states where insurance companies can't consider your credit score, finding cheap auto insurance can be very difficult if you have bad credit.
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But some companies offer lower rates than others—Nationwide offers the cheapest auto insurance for most drivers with bad credit, while Grange Insurance and USAA also offer affordable coverage.
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The cheapest bad credit car insurance is from Grange Insurance, which offers coverage for $1,931 per year (or $161 per month) for drivers with a credit score below 578.
Grange’s bad-credit auto insurance is only $400 more per year than drivers with good credit—the lowest change we found, even though Grange is only available in 18 states. Nationwide and USAA also have affordable auto insurance rates if you have bad credit—though not everyone qualifies for USAA.
Drivers with bad credit pay 66% more for auto insurance than drivers with good credit. But some companies offer much smaller increases between coverage for drivers with good and bad credit.
Grange Insurance, which offers car insurance with bad credit, is only 27% more expensive than drivers with good credit — the lowest increase we've ever calculated.
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At Safe Auto and Dairyland, which are known for providing car insurance to high-risk drivers, the rate hikes for drivers with bad credit are also relatively low, although both insurers have higher-than-average rates.
Insurance companies almost always use credit scores when setting premiums. All major companies, including State Farm, GEICO, and Allstate, use credit to set their auto insurance rates because they find that people with lower credit scores are more likely to file claims.
However, this may change in the future. Root Insurance, which sets rates based on driver habits, has committed to phasing out the use of credit scores by 2025. In several states, companies cannot use your credit score to determine rates. They include:
Scoring How we rate: Scoring is set by our editorial team. Our methodology takes into account many factors, including pricing, financial ratings, quality of customer service and other product-specific characteristics.
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Available in nearly every state except Alaska, Louisiana, and Massachusetts, Nationwide offers the cheapest auto insurance for most people with bad credit.
For most drivers with bad credit, the best cheap car insurance is from Nationwide. Nationwide bad credit auto insurance costs an average of $2,205 per year. While Nationwide is actually the third cheapest bad credit auto insurance option we found, it's the company most people can get coverage because it's available in more states.
Nationwide is the best insurance company for drivers with bad credit because, in addition to affordable rates, Nationwide offers a range of discounts to help you save even more. Even if you have a poor credit score, you may qualify for a Nationwide discount if:
Grange is the cheapest option for drivers with bad credit, on average for each company — even though the insurance is only available in 18 states.
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On average, drivers with bad or bad credit pay $1,931 a year in Grange — 37% less than the average. As long as you live in one of the states below that offer Grange coverage, the insurance company has the absolute cheapest bad credit auto insurance of any company.
In addition to cheap car insurance for drivers with bad credit, Grange Insurance offers a number of add-ons. In addition to comprehensive coverage and collision coverage, Grange drivers can choose from new vehicle replacement, gap insurance, genuine parts coverage, identity theft protection, and more.
If you qualify, USAA is the best company for cheap auto insurance for drivers with bad credit.
Drivers with bad credit pay an average of $2,018 a year for USAA auto insurance. That makes USAA the second cheapest company after Grange. But USAA isn't available to everyone - only active and ex-military members and their families are covered if available.
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While USAA offers fewer discounts than the competition, that doesn't mean you should stay away if you qualify and have bad credit. The company is known for its highly rated customer service and low number of service complaints, making it one of the leading insurance companies serving drivers with bad auto insurance  .
Drivers with bad credit can still get auto insurance from most companies, though they will almost always pay more for coverage than someone with good credit. It still costs nearly $900 more to insure a driver with bad or bad credit than a driver with good credit.
How much you pay for auto insurance with bad credit is also affected by where you live. We found that the most expensive state to insure a car with bad credit is Louisiana ($5,950 per year) and the cheapest is North Carolina ($1,408 per year).
If you have bad credit, you can still find cheap car insurance. The surest way to find the best price is to compare quotes from multiple companies before buying. That way, you can be sure to get the cheapest rates and the best coverage, discounts and service in your area.
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Drivers with lower credit scores may receive higher insurance premiums in most states. That's because insurers consider these drivers to be high-risk drivers, as are drivers who cause accidents and traffic violations, or teenage drivers who are new to the road.
While drivers with lower credit scores tend to pay more for auto insurance, in some states, insurers no longer allow someone's credit score to be a factor in setting premiums -- as it could be disastrous for some drivers. unfair punishment.
On average, Nationwide offers the cheapest deals to drivers with bad credit. However, depending on where you live and are from, Grange Insurance or USAA (or other companies) may offer cheaper auto insurance than Nationwide.
Generally, the worse your credit score, the more expensive car insurance will be. If you have good credit (and a clean driving record), your interest rate will be much lower than someone with bad or even good credit.
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No, getting an insurance quote will not affect your credit score. Insurance companies use soft inquiries when checking your credit, which means it shows up on your credit history but doesn't affect your credit score.
Yes, an insurance company can refuse to insure your car if your credit score is too low. However, several states do not allow insurance companies to deny coverage based on your credit score, including California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, and Utah.
We analyzed auto insurance rates from Quadrant Information Services for all 50 states, plus every zip code in Washington State. We use the following insurance limits to calculate the full cost of insurance for drivers with bad credit:
General average rates, zip code rates, and rates from the cheapest companies based on the average of single drivers in their 30s. Our example vehicle is a 2017 Toyota Camry LE with 10,000 miles per year.
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Traffic violation rates and "bad" credit rates were determined based on average rates for 30-year-old single male drivers with credit scores below 578.
Some operators may be represented by affiliates or subsidiaries. Rates given are typical charges. Actual valuation may vary.
Use external sources including government data, industry research and renowned news organizations to complement proprietary market data and in-house expertise. Learn more about how we use third party resources and review them as part of our operations
Rachael Brennan is the company's senior editor and licensed auto insurance specialist. Her work has also appeared on MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.
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Andrew Hurst is the company's senior editor and licensed motor insurance specialist. His work has also been featured in The New York Times, Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Journal, ValuePenguin, and Property Casualty 360.
Ian Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Board of America. Previously, he was a financial advisor to MetLife and MassMutual. If you receive a traffic ticket, have no driving experience, or have a bad credit score, insurance companies may consider you a high-risk driver and raise your premiums accordingly. But there is still hope. Many reputable carriers offer coverage for people with poor driving records, and if you can't find coverage, your state's auto insurance program may offer you an option.
Find the cheapest company in your area that offers high-risk plans by getting a free online insurance quote
We've compiled thousands of motorist citations for four different violations that resulted in them
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