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Taylor Milam-Samuel is an experienced insurance writer for Compare.com. A credentialed educator, Taylor is passionate about personal finance and understanding how people manage their money. You can find her work across several trusted insurance and personal finance sites, including U.S. News & World Report, Business Insider, Credit Karma, Insurify, and more.
Taylor has been writing for Compare.com since 2025.
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Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
Drivers with poor credit pay an overall average of $168 per month for car insurance, according to Compare.com data. That’s about 30% higher than what people with excellent credit pay for coverage. But you can still find a good deal with the right company.
For example, insurers like COUNTRY Financial, Auto-Owners, and USAA have far cheaper average rates, according to our research.
But the cheapest option isn’t always the best option. Companies like State Farm, Root, and COUNTRY Financial are some of the best companies for drivers with bad credit, based on our research.
Many insurers use something called a “credit-based insurance score” to measure financial responsibility and your likelihood of filing a claim.[1] To offset the extra risk, auto insurers charge more when you have a low score. But the good news is your credit history is only one factor that determines your rates, and some U.S. states don’t allow insurers to consider it.
In this article, we’ll cover how credit affects your car insurance rates, the cheapest companies for people with bad credit, and several ways to find more affordable coverage.
COUNTRY Financial has the cheapest average rates for drivers with poor credit.
Insurers like CURE and Dillo don’t use credit to set car insurance rates, which can make them a great alternative if you have less-than-perfect credit.
California, Hawaii, Maryland, Michigan, and Massachusetts don’t allow insurers to use credit scores when determining rates.
The best insurance depends on your unique profile and needs — driving record, coverage, location, budget, and more. Even though there’s no one-size-fits-all company for every driver, the following insurers are solid picks if you have bad credit.
We selected these companies based on their use of credit to calculate rates, average rates for drivers with poor credit, and overall customer satisfaction scores.
| User Reviews | 3.4 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $91/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $150/mo |
Drivers appreciate the quick claim handling and good service but dislike the high rates and lack of pricing transparency.
Drivers appreciate the quick claim handling and good service but dislike the high rates and lack of pricing transparency.
Root uses AI to set car insurance rates based on your driving habits. Using an app, the company tracks your driving for a few weeks and then offers you a quote. Safe drivers pay less for coverage.
The quote process is long and takes weeks compared to the usual five or 10 minutes. But if you’re a safe driver with bad credit, it’s worth the hassle for lower rates. Customer reviews are more positive than usual, and the claims process is entirely digital and surprisingly fast.
Rates based on safe driving
Impressive customer reviews
Streamlined claims process
Difficult to qualify
Not available everywhere
Lengthy quote process
| J.D. Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 665 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.5 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $40/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $72/mo |
COUNTRY Financial stands out with surprisingly low rates for drivers with bad credit. If saving money is your top priority, it’s one of the best options. The company’s program for teen drivers, the Simply Drive course, can help teens drive more responsibly. Plus, you qualify for a 10% discount after completing it.
Even though its standard coverage options are strong, it doesn’t offer as many optional coverages. The biggest downside to COUNTRY Financial is that it’s available in only 19 states.
Cheap rates for drivers with bad credit
Special programs for teen drivers
Many discounts available
Available in only 19 states
Limited optional coverage
Must work with an agent
| User Reviews | 3.9 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.7 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $56/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $108/mo |
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
State Farm earns one of the top spots for customer satisfaction in every region, according to the J.D. Power 2025 U.S. Auto Insurance Study.[2] It’s a top pick for helpful representatives and has an easy claims process.
The company also has lower-than-average rates for drivers with bad credit, so you don’t have to spend extra for a solid customer experience. Plus, you can take advantage of unique discounts like the Drive Safe & Save telematics program.
Strong customer satisfaction ratings
Two unique discount programs
Low rates for bad-credit drivers
Gap insurance not available
No pay-per-mile option
Not available in every state
Compare cheap, personalized quotes in less than 10 minutes.
Insurance companies look at different factors to set rates, like your location, age, and driving record. Most U.S. states allow insurers to consider your credit history, but California, Hawaii, Maryland, Michigan, and Massachusetts have banned the practice.[3]
If you live in a state that uses credit history as a rating factor, having bad credit will likely increase your rates. It takes time to improve your credit, but comparing quotes can help you save money right away.
Let’s take a look at the cheapest car insurance companies for drivers with bad credit. But keep in mind that the following rates are national averages, and you might find lower rates depending on where you live.
Company  | Average Monthly Premium |
|---|---|
| COUNTRY Financial | $49 |
| USAA | $63 |
| NJM | $76 |
| Auto-Owners | $78 |
| Mile Auto | $84 |
| Allstate | $90 |
| State Farm | $90 |
| American Family | $91 |
| Commonwealth Casualty | $107 |
| Safeco | $107 |
| GEICO | $111 |
| Root | $111 |
| Dairyland | $113 |
| The General | $113 |
| Nationwide | $117 |
| Direct Auto | $117 |
| Mercury | $119 |
| National General | $119 |
| Travelers | $122 |
| Bristol West | $124 |
| GAINSCO | $127 |
| Erie | $134 |
| Farmers | $135 |
| Anchor | $136 |
| CSAA | $145 |
| Elephant | $145 |
| AssuranceAmerica | $160 |
| 21st Century | $161 |
| Clearcover | $170 |
| Shelter | $179 |
| State Auto | $180 |
| Liberty Mutual | $182 |
| The Hartford | $215 |
| Chubb | $234 |
| Amica | $348 |
Your costs will vary based on different factors, but COUNTRY Financial has the cheapest average coverage nationwide, at $49 per month for a liability-only policy.
 |  |  |  |  |  |
|---|---|---|---|---|---|
Average Premium Prices based on average across state-minimum and full coverage car insurance $56/mo* | Average Premium Prices based on average across state-minimum and full coverage car insurance $76/mo* | Average Premium Prices based on average across state-minimum and full coverage car insurance $62/mo* | Average Premium Prices based on average across state-minimum and full coverage car insurance $113/mo* | Average Premium Prices based on average across state-minimum and full coverage car insurance $106/mo* | Average Premium Prices based on average across state-minimum and full coverage car insurance $115/mo* |
Overall Rating 0.0 | Overall Rating 4.3 | Overall Rating 4.3 | Overall Rating 4.9 | Overall Rating 3.6 | Overall Rating 4.1 |
Value 0.0/5 | Value 4.9/5 | Value 3.5/5 | Value 4.1/5 | Value 3.8/5 | Value 4.2/5 |
Customer Service 0.0/5 | Customer Service 4.4/5 | Customer Service 3.7/5 | Customer Service 4.9/5 | Customer Service 4.1/5 | Customer Service 4.3/5 |
Claims Handling 0.0/5 | Claims Handling 4.1/5 | Claims Handling 3.7/5 | Claims Handling 4.6/5 | Claims Handling 3.5/5 | Claims Handling 3.9/5 |
Special Highlight N/AAI-generated from 0 user reviews | Special Highlight N/AAI-generated from 65 user reviews | Special Highlight N/AAI-generated from 9 user reviews | Special Highlight N/AAI-generated from 10 user reviews | Special Highlight N/AAI-generated from 165 user reviews | Special Highlight N/AAI-generated from 248 user reviews |
Your location also affects your car insurance costs. For example, states with severe weather and more auto insurance fraud have higher rates.
Even within the same state, average rates can change based on factors like where you park your car and traffic in different ZIP codes.[4] But remember, California, Hawaii, Maryland, Michigan, and Massachusetts don’t allow insurers to consider credit when determining rates.
The map below highlights the cheapest car insurance companies in each state, plus their average rates, according to our data.
State | Cheapest Insurer’s Average Monthly Premium | Cheapest Insurer |
|---|---|---|
| Alabama | $92 | USAA |
| Arizona | $107 | Mile Auto |
| Arkansas | $85 | State Farm |
| California | $181 | Root |
| Colorado | $116 | State Farm |
| Connecticut | $157 | State Farm |
| Delaware | $116 | USAA |
| Florida | $116 | State Farm |
| Georgia | $130 | Auto-Owners |
| Idaho | $46 | Auto-Owners |
| Illinois | $81 | Auto-Owners |
| Indiana | $78 | Auto-Owners |
| Iowa | $43 | State Farm |
| Kansas | $94 | State Farm |
| Kentucky | $153 | Progressive |
| Louisiana | $107 | State Farm |
| Maine | $78 | USAA |
| Maryland | $182 | CSAA |
| Massachusetts | $77 | State Farm |
| Michigan | $108 | Auto-Owners |
| Minnesota | $93 | State Farm |
| Mississippi | $74 | State Farm |
| Missouri | $100 | USAA |
| Montana | $63 | State Farm |
| Nebraska | $76 | Auto-Owners |
| Nevada | $68 | COUNTRY Financial |
| New Hampshire | $68 | Safeco |
| New Jersey | $185 | NJM |
| New Mexico | $124 | State Farm |
| New York | $141 | Erie |
| North Carolina | $86 | Progressive |
| North Dakota | $39 | Auto-Owners |
| Ohio | $61 | Mile Auto |
| Oklahoma | $76 | State Farm |
| Oregon | $84 | Mile Auto |
| Pennsylvania | $75 | State Farm |
| Rhode Island | $127 | USAA |
| South Carolina | $105 | USAA |
| South Dakota | $90 | State Farm |
| Tennessee | $78 | Mile Auto |
| Texas | $98 | State Farm |
| Utah | $87 | USAA |
| Vermont | $30 | State Farm |
| Virginia | $102 | Auto-Owners |
| Washington | $111 | State Farm |
| Washington D.C. | $155 | CSAA |
| West Virginia | $78 | State Farm |
| Wisconsin | $60 | USAA |
| Wyoming | $50 | USAA |
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Your credit history is a snapshot of your financial life: payment history, accounts, credit, and more. And insurers use this to determine your credit-based insurance score when calculating your rates.[5] It’s similar to a FICO score or other credit score — but it’s not exactly the same.
Instead, it’s more focused on the chances of you defaulting on your bill or filing a claim. In short, the higher your score, the less likely you are to file a claim. Insurers then charge less for coverage since there’s less risk. The reverse is also true: Insurers charge more for high-risk drivers when you have a low score.
It’s only one factor, though — insurers also consider your age, gender, location, and driving record.
Most insurance companies check your credit when setting rates, unless you live in a state that bans it. Only two insurers skip the credit check entirely: CURE and Dillo.
Let’s explore these two insurers in more detail below.
CURE offers car insurance policies in New Jersey, Pennsylvania, and Michigan based primarily on your driving record. The company doesn’t price coverage based on your education, occupation, or credit score, unlike many major insurers, though its availability is limited compared to competitors.
Dillo is a Texas-based company that offers car insurance to drivers without factoring in credit history — unlike most other insurers, which rely on multiple personal factors to set rates. Drivers with poor credit, past violations, and insurance lapses can get instant coverage without worrying about how it’ll affect their premiums. Like CURE, Dillo isn’t available everywhere.
Even though insurance is typically more expensive when you have bad credit, you can still find ways to lower the cost.
Let’s take a look at some of the most effective ways to save money on car insurance when you have less-than-perfect credit:[6]
When you file a claim, you’re responsible for paying the deductible, and you can pick the deductible amount that best fits your budget. The higher your deductible, the less you pay for monthly coverage. If you can afford a higher deductible, consider increasing it to lower your premium.
Ask about discounts when you set up coverage. You might qualify for reduced rates based on affiliations, driving habits, loyalty, and more.
Some insurance companies, like Nationwide and Mile Auto, have pay-per-mile insurance. It’s usually cheaper than traditional coverage if you drive less than 10,000 miles each year.
Car insurance companies offer free quotes online. It’s a quick process that usually takes less than five minutes. Different insurers have different rates, even for the same driver. Compare quotes from at least three insurers to find the best deal.
Comparing quotes saves users an average of $867 per year.†
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Your credit is only one factor that affects how much you pay for car insurance coverage, but you can improve it and lower your monthly premium.
It takes time to increase your credit, but you can make it happen with the following steps:
Review your credit report. The first step is checking your credit report. Several services allow you to view yours for free, and you can request a copy from each credit bureau every 12 months. Read through the report and check for errors or fraud.
Dispute errors. If you find any errors on your credit report, notify the credit bureau that reported it: Equifax, Experian, or TransUnion. Request that the company remove the error and update your report.
Make payments on time. Your payment history is the biggest factor that affects your credit. Set reminders on your phone or calendar to make credit card and loan payments on time to improve your credit.
Pay off debt. Your credit ratio is the amount you owe compared to your available credit. The lower the ratio, the better your credit. Your score increases as your debt decreases.
Your credit affects how much you pay for an auto policy in most states, so it’s a good idea to understand how it works. Check out this additional information about car insurance for drivers with bad credit.
Car insurance companies in California, Hawaii, Maryland, Michigan, and Massachusetts don’t use your credit score because state laws don’t allow it. But even if you don’t live in any of these states, some telematics insurers, like Root, put less weight on credit scores and use data about driving patterns to determine rates instead.
An insurance company can deny you coverage because of your credit score, but it’s rare, and only allowed in some states. Most insurance companies use credit scores as one of many factors when determining rates, so it doesn’t usually make or break your application — you’re more likely to have a high rate than be denied.
A credit score of less than 580 is considered bad credit for car insurance. FICO, the most popular credit-scoring service, defines “poor” credit as scores less than 580. “Fair" credit scores are between 580 and 679.[7]
It depends on your driving record and violations. Some companies — like GEICO and American Family — specialize in coverage for drivers who have serious violations and need SR-22 insurance. Our data shows that COUNTRY Financial, Auto-Owners, and USAA are the three cheapest insurers for high-risk drivers.
It’s possible but not likely. In states where companies can use credit as a rating factor, insurers can’t deny auto coverage based on your credit history alone.[8] But poor credit combined with other risks, like multiple accidents or violations, can make it harder to get insurance.
You can get car insurance with a low income by comparing quotes, asking about discounts, and adjusting your coverage levels (as long as you maintain your state’s minimum requirements). Some states, like California, Hawaii, Maryland, and New Jersey, offer government-sponsored programs to help low-income drivers find affordable coverage.
Yes. State Farm uses your credit-based insurance score, along with other factors, to set rates in most states. Still, State Farm must comply with state laws that restrict or prohibit the use of credit.
Yes, depending on your state. Progressive considers credit history among several factors when setting rates. But the company doesn’t use it to deny coverage or cancel policies.
Yes. GEICO considers credit-based insurance scores as a factor when determining rates in most states, but how the company uses them varies by state and policy type.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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Taylor Milam-Samuel is an experienced insurance writer for Compare.com. A credentialed educator, Taylor is passionate about personal finance and understanding how people manage their money. You can find her work across several trusted insurance and personal finance sites, including U.S. News & World Report, Business Insider, Credit Karma, Insurify, and more.
Taylor has been writing for Compare.com since 2025.
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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