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How can I get cheap car insurance with bad credit?

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CarInsurance.com data show that drivers with bad credit can save $2,000, or $167 a month, on their yearly policy cost by comparing rates. To find cheap car insurance with bad credit, CarInsurance.com Consumer Analyst Penny Gusner recommends comparing at least three quotes from multiple insurance companies.

Geico is the cheapest car insurance company for drivers with bad credit, based on a CarInsurance.com analysis of up to six major insurers in 10 ZIP codes in each state.

Cheap car insurance companies for drivers with bad credit

Below you’ll see how major carriers compare on rates for bad credit drivers in your state. Enter your state in the search field to see how much rates differ among insurers, which is how much you can potentially save. Rates shown are monthly.

StateCompanyMonthly rate with bad credit
AlaskaState Farm Mutual Auto$128
AlaskaGEICO General$137
AlaskaProgressive Direct$167
AlaskaProgressive Specialty$198
AlabamaGEICO Cas$91
AlabamaGEICO General$108
AlabamaNationwide Mutual Fire$169
AlabamaAllstate P&C$185
AlabamaMid-Century Ins Co$201
AlabamaProgressive Specialty$254
AlabamaState Farm Mutual Auto$331
ArkansasGEICO General$154
ArkansasFarmers Ins Co$193
ArkansasState Farm Mutual Auto$198
ArkansasNationwide Mutual$230
ArkansasAllstate P&C$253
ArkansasProgressive NorthWestern$284
ArizonaGEICO General$96
ArizonaGEICO Cas$119
ArizonaProgressive Advance Ins$172
ArizonaNICOA PPNM$233
ArizonaFarmers Ins Co of AZ$258
ArizonaAllstate F&C$299
ArizonaState Farm Mutual Auto$406
ColoradoGEICO Cas$122
ColoradoState Farm Mutual Auto$197
ColoradoAMCO Insurance$207
ColoradoGEICO General$260
ColoradoProgressive Direct$280
ColoradoAllstate F&C$299
ColoradoFarmers Ins Exchange 2.0$320
ConnecticutGEICO General$142
ConnecticutState Farm Mutual Auto$193
ConnecticutNationwide Mutual$233
ConnecticutProgressive Casualty$273
ConnecticutAllstate F&C$322
ConnecticutForemost Ins Co. Grand Rapids$386
DCGEICO General$139
DCState Farm Mutual Auto$256
DCNICOA$272
DCProgressive Direct$291
DCAllstate P&C$356
DelawareGEICO General$178
DelawareProgressive Direct$230
DelawareNationwide Mutual$246
DelawareState Farm Mutual Auto$298
DelawareAllstate P&C$351
FloridaState Farm Mutual Auto$225
FloridaGEICO General$265
Florida21st Century Centennial$279
FloridaAllied P&C PPCM$316
FloridaAllstate F&C$434
FloridaProgressive Select$444
GeorgiaGEICO General$151
GeorgiaProgressive Premier$228
GeorgiaProgressive Mountain$240
GeorgiaNationwide Mutual$269
GeorgiaAllstate F&C$300
GeorgiaState Farm Mutual Auto$332
IowaGEICO Cas$85
IowaGEICO General$123
IowaNationwide Agribusiness Ins$127
IowaProgressive Universal$133
IowaState Farm Mutual Auto$151
IowaFarmers Ins Co$159
IowaProgressive Northern$175
IowaAllstate F&C$198
IdahoGEICO General$91
IdahoState Farm Mutual Auto$109
IdahoFarmers Ins Co Of ID$138
IdahoAllied Depositors PPXM$142
IdahoProgressive NorthWestern$183
IdahoAllstate F&C$209
IllinoisGEICO Cas$130
IllinoisGEICO General$147
IllinoisState Farm Mutual Auto$152
IllinoisProgressive Northern$184
IllinoisIllinois Farmers Ins Co$216
IllinoisAllstate F&C$271
IndianaGEICO Cas$76
IndianaNationwide Mutual$100
IndianaProgressive Paloverde$147
IndianaState Farm Mutual Auto$175
IndianaIllinois Farmers Ins 2.0$193
IndianaAllstate P&C$212
KansasAllied NW Affin PPBM$130
KansasGEICO General$140
KansasState Farm Mutual Auto$188
KansasFarmers Ins Co$211
KansasAllstate F&C$238
KansasProgressive NorthWestern$253
KentuckyState Farm Mutual Auto$185
KentuckyGEICO General$188
KentuckyProgressive Direct$218
KentuckyNationwide P&C$264
KentuckyAllstate P&C$297
LouisianaGEICO Cas$173
LouisianaState Farm Mutual Auto$313
LouisianaAllstate P&C$339
LouisianaProgressive Security Ins.$441
MarylandGEICO Cas$120
MarylandState Farm Mutual Auto$203
MarylandProgressive Select$215
MarylandNAICOA$241
MarylandAllstate Indemnity$247
MaineGEICO General$62
MaineUnited Financial Casualty$117
MaineState Farm Mutual Auto$135
MaineProgressive NorthWestern$160
MaineAllstate F&C$168
MichiganGEICO Ind$177
MichiganProgressive Marathon$277
MichiganState Farm Mutual Auto$603
MichiganFarmers Ins Exch$709
MichiganAllstate F&C$866
MinnesotaState Farm Mutual Auto$152
MinnesotaGEICO General$167
MinnesotaAllied P&C$183
MinnesotaProgressive Preferred$210
MinnesotaIllinois Farmers Ins$215
MinnesotaAllstate Indemnity$309
MissouriGEICO General$131
MissouriGEICO Cas$137
MissouriState Farm Mutual Auto$153
MissouriAllied P&C PPCM$156
MissouriFarmers Ins Co$214
MissouriProgressive Casualty$232
MissouriAllstate F&C$259
MississippiGEICO General$134
MississippiNationwide P&C$171
MississippiState Farm Mutual Auto$192
MississippiAllstate P&C$240
MississippiProgressive Gulf Ins$245
MontanaGEICO General$161
MontanaState Farm Mutual Auto$170
MontanaAllied Depositors PPXM$229
MontanaAllstate F&C$246
MontanaMid-Century Ins Co$277
MontanaProgressive NorthWestern$295
North CarolinaGEICO Govt Employees$89
North CarolinaProgressive Southeastern$99
North CarolinaNationwide Mutual$108
North CarolinaAllstate P&C$126
North CarolinaState Farm Mutual Auto$126
North DakotaGEICO General$91
North DakotaAllied P&C PPCM$130
North DakotaMid-Century Ins Co$143
North DakotaState Farm Mutual Auto$159
North DakotaProgressive NorthWestern$188
North DakotaAllstate Insurance$226
NebraskaGEICO General$114
NebraskaAllied P&C$130
NebraskaState Farm Mutual Auto$171
NebraskaAllstate F&C$202
NebraskaMid-Century Ins Co$204
NebraskaProgressive Northern$281
New HampshireGEICO General$90
New HampshireProgressive Universal$120
New HampshireNationwide Mutual$132
New HampshireState Farm Mutual Auto$134
New HampshireAllstate F&C$191
New HampshireProgressive Northern$256
New Jersey21st Century Centennial Ins Co$183
New JerseyProg Garden State Ins Co$201
New JerseyGEICO Govt Employees$220
New JerseyState Farm Ind$303
New JerseyAllstate NJ P&C$313
New MexicoProgressive Direct$154
New MexicoState Farm Mutual Auto$166
New MexicoGEICO General$192
New MexicoAllied AMCO$196
New MexicoProgressive Northern$205
New MexicoFarmers Ins Co of AZ$218
New MexicoAllstate F&C$270
NevadaGEICO Cas$132
NevadaVictoria F&C$183
NevadaProgressive Northern$234
NevadaMid-Century Ins Co$252
NevadaAllstate F&C$287
NevadaState Farm Mutual Auto$406
New YorkGEICO General$103
New YorkAllstate F&C$120
New YorkState Farm Mutual Auto$236
New YorkProgressive Casualty$293
OhioGEICO Cas$61
OhioNationwide Mutual$112
OhioGEICO General$125
OhioProgressive Direct$131
OhioState Farm Mutual Auto$137
OhioFarmers Ins of Columbus$152
OhioProgressive Specialty$167
OhioAllstate F&C$188
OklahomaGEICO Cas$126
OklahomaGEICO General$179
OklahomaState Farm Mutual Auto$194
OklahomaFarmers Ins Co$222
OklahomaAllstate F&C$234
OklahomaProgressive Northern$280
OregonGEICO Cas$104
OregonGEICO General$130
OregonState Farm Mutual Auto$170
OregonFarmers Ins Co Of OR$193
OregonProgressive Universal$204
OregonNICOA$231
OregonAllstate F&C$248
PennsylvaniaGEICO General$124
PennsylvaniaGEICO Cas$137
PennsylvaniaNationwide Property & Casualty$170
PennsylvaniaState Farm Mutual Auto$172
PennsylvaniaProgressive Advanced$230
PennsylvaniaAllstate F&C$289
PennsylvaniaProgressive Specialty$378
Rhode IslandState Farm Mutual Auto$186
Rhode IslandNationwide Mutual$235
Rhode IslandGEICO General$251
Rhode IslandProgressive Direct$286
Rhode IslandAllstate F&C$382
Rhode IslandProgressive Casualty$409
South CarolinaNationwide Mutual Fire$151
South CarolinaState Farm Mutual Auto$197
South CarolinaGEICO Govt Employees$205
South CarolinaProgressive Northern$213
South CarolinaAllstate F&C$228
South DakotaGEICO General$141
South DakotaAllied AMCO PPAM$151
South DakotaMid-Century Ins Co$165
South DakotaState Farm Mutual Auto$178
South DakotaProgressive Northern$212
South DakotaAllstate Insurance$213
TennesseeGEICO General$152
TennesseeMountain Laurel Assurance$160
TennesseeState Farm Mutual Auto$166
TennesseeProgressive Hawaii$199
TennesseeNationwide Mutual$216
TennesseeMid-Century Ins Co$217
TennesseeAllstate P&C$256
TexasState Farm Mutual Auto$195
TexasProgressive Cty Mtl$247
TexasNationwide CCMIC$251
TexasGEICO County Mutual Ins Co.$295
TexasAllstate F&C$333
UtahGEICO General$118
UtahGEICO Cas$131
UtahAllied P&C$160
UtahMid-Century Ins Co$192
UtahProgressive Classic$212
UtahAllstate F&C$220
UtahState Farm Mutual Auto$320
VirginiaGEICO General$92
VirginiaNationwide P&C$104
VirginiaState Farm Mutual Auto$130
VirginiaProgressive Gulf Ins$136
VirginiaAllstate P&C$202
VermontGEICO General$94
VermontNationwide Mutual$115
VermontProgressive Direct$133
VermontAllstate F&C$177
VermontState Farm Mutual Auto$195
VermontProgressive Northern$320
WashingtonNICOA$131
WashingtonProgressive Direct$148
WashingtonGEICO General$159
WashingtonState Farm Mutual Auto$169
WashingtonAllstate F&C$210
WashingtonFarmers Ins Co of WA$243
WisconsinGEICO Cas$64
WisconsinGEICO General$94
WisconsinState Farm Mutual Auto$128
WisconsinProgressive Universal$145
WisconsinMid-Century Ins Co$159
WisconsinArtisan and Truckers Casualty$176
WisconsinAllstate P&C$201
WisconsinAllied AMCO PPA$254
West VirginiaGEICO General$135
West VirginiaNICOA$153
West VirginiaState Farm Mutual Auto$160
West VirginiaNationwide Mutual$185
West VirginiaProgressive Max$204
West VirginiaAllstate P&C$246
WyomingState Farm Mutual Auto$144
WyomingGEICO General$158
WyomingMid-Century Ins Co$169
WyomingAllstate F&C$255

Best cheap car insurance for bad credit drivers

Drivers with bad credit pay, on average, about $1,000 more (71 percent) for car insurance than drivers with good credit, according to CarInsurance.com’s rate analysis. If you live in one of the worst states for drivers with bad credit, you can pay a lot more.

As we’ve established, you can still save money by comparison shopping, even after a credit ding. That’s because insurers use different methods to assess risk and price policies, so no two companies will raise your rates the same amount.

But price isn’t the only thing that differentiates insurance companies. The cheapest car insurance company for drivers with bad credit may not be one that doesn’t review your credit, but simply the one that charges you the least for having bad credit. Here we’ll explain the benefits and drawbacks of comparing rates from a variety of carriers.

Car insurance companies that don’t do credit checks

It may seem like the best way to get cheap car insurance with bad credit is to find an insurance company that doesn’t look at credit scores. But Gusner says that’s not the case.

The few car insurance companies that don’t check credit specialize in high-risk drivers. These drivers cost insurers more than drivers with good credit and clean records, because they are more likely to file more claims that insures have to pay. That means even though these companies skip a credit check, they may still be more expensive than traditional carriers, because their overall costs are higher, which is passed on to you, says Gusner.

"An insurance company that primarily serves low-risk drivers that has a low surcharge for bad credit may be less expensive than a company that primarily serves high-risk drivers and doesn’t do a credit check,” says Gusner.

Insurance companies that don’t account for credit when determining rates are typically smaller, regional carriers that potentially have fewer resources to handle claims, and less cash flow, than the big companies. Gusner’s advice  should you consider one of these companies for coverage:

  • Check complaint filings with your state department of insurance website or at the National Association of Insurance Commissioners (NAIC) website.
  • Check their financial rating with a company such as A.M Best to be sure they are solvent enough to pay claims. You want to use a company with at least a B+ or A rating, if not higher.

Companies that cater to high-risk drivers but check credit

There are also car insurance companies that serve high-risk drivers that use credit scores. These companies may have comparable rates to traditional carriers, or rates that may be even cheaper. Many of these are separately branded companies owned by major carriers.  Notable ones include:

  • Victoria, owned by Nationwide
  • Titan, owned by Nationwide
  • The General, owned by American Family Insurance
  • Bristol West, owned by Farmers

Traditional carriers

Some of the major insurance companies own subsidiaries that focus on high-risk drivers. Geico Casualty, owned by Geico, is one example. Progressive also generally provides high-risk drivers non-standard policies at affordable rates, compared to other big players in the industry, says Gusner.

“When you ask for quotes and go to buy a policy, you do so like any other driver,” she says, “but if deemed high-risk, you’d be assigned to the division that serves those drivers, likely without even knowing it.”

The bottom line is that you can still pay a lower rate with some traditional carriers’ coverage for drivers with bad credit.

Why do insurance companies use credit history?

Since your credit history doesn’t involve driving, you may wonder why do insurance companies require a credit check and how bad credit affects your car insurance rates.

Insurers use the information on your credit report to create their own insurance credit score for you, and use it when pricing coverage. Insurers say their data show a connection between credit history and the filing of claims. People who pay their bills on time, on average, file fewer and less costly claims than those with a lot of late payments or delinquencies. That means drivers with poor credit generally cost insurance companies more money, so they are charged more for coverage.

That’s why those with poor credit typically pay more for car insurance than those with good or excellent credit.

Note that California, Hawaii and Massachusetts do not allow insurance companies to use credit history when setting car insurance rates, but all other states do.

 

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