Lindsay is a freelance personal finance writer currently pursuing her Series 65 license. She enjoys helping readers learn money management skills that improve their lives.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
Mark FriedlanderDirector, Corporate Communications, Triple-I
Corporate communications director for Insurance Information Institute
20+ years in insurance and communications
As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Save up to $852 by comparing quotes from the top 100+ insurance companies
Excellent
Secure. Free. Easy-to-use.
Advertiser Disclosure
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
Cheapest recent rates for drivers with poor credit
Drivers have found policies from Mile Auto, National General Value, Certainly, and more, for rates as low as $41/mo. through Insurify
*Quotes generated for Insurify users within the last 10 days. Last updated on October 30, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 30, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on October 30, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 30, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Credit scores typically range from 500 to 800. Insurers typically consider scores of 669 or lower to be “below average” and a score of 580 or lower as “poor.”[1]
Most car insurance companies consider your consumer credit information when setting auto insurance rates. Actuarial data shows drivers with poor credit tend to file more claims than drivers with good or excellent credit, so insurers typically charge higher rates to drivers with poor credit.
For example, the overall average cost of car insurance for drivers with poor credit is $190 per month, according to Insurify data. Meanwhile, the monthly average for drivers with excellent credit is $135. Comparing car insurance rates can help drivers with below-average credit find the best deal available to them.
Quick Facts
States that restrict or ban auto insurers from considering your credit history include California, Hawaii, Massachusetts, and Michigan.
Applying for car insurance shouldn’t affect your credit history.
In most states, insurers can deny you coverage if you have bad credit or charge you a much higher rate than a driver with good credit.
Best car insurance for drivers with bad credit
Even if you have bad credit, you have options when it comes to car insurance. Here are some of the best car insurance companies for drivers with lower credit scores.
Insurance Company
▲▼
Average Liability Quote for Drivers With Bad Credit
▲▼
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
▲▼
Best For
▲▼
COUNTRY Financial
$20
8.8
Bundling and discounts
Mile Auto
$67
7.5
Low-mileage drivers
Nationwide
$101
8.7
Broad availability
Auto-Owners
$56
8.5
Customer satisfaction
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.
We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.
Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
Customer satisfaction: To calculate this score, Insurify analyzed more than 28,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.
COUNTRY Financial: Best for bundling and discounts
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.8 /10
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.
$17/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.
$40/mo
3.5
A solid optionBased on 37 verified guest reviews and ratings
How drivers feel about Country Financial
Drivers appreciate the great customer service and initial low prices but dislike the frequent rate increases and poor roadside assistance.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Good claims process
High customer satisfaction
How drivers feel about Country Financial
Drivers appreciate the great customer service and initial low prices but dislike the frequent rate increases and poor roadside assistance.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Good claims process
High customer satisfaction
Reviews (26)
Chloe
October 19, 2024
Verified Review
Unaffordable Rates That Increase Monthly
Terrible, I wouldn't ever recommend Country Financial to anyone. My policy kept increasing monthly without any explanation, despite not having any new accidents or tickets. They didn't offer many discounts and it became unaffordable very quickly.
James
October 8, 2024
Verified Review
Insurance Cost
The rates are increasing very quickly.
Dayna
September 17, 2024
Verified Review
Goodbye, Country Financial
I had been with Country Financial for over 30 years. However, they raised my auto rate by over $422.00 for a 6-month policy, which was the deal breaker. There was absolutely no reason for it.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
868
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.2
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+
Why we picked this company
Mostly selling coverage in the West and Midwest, COUNTRY Financial has a lot to offer — especially if you have a less-than-perfect credit history. In addition to auto insurance, the company sells property, life, business, farm, crop, and pet insurance, so you have multiple ways to score a bundling discount. COUNTRY Financial sells car insurance to drivers with bad credit, often for less than some other companies.
The company also has a wide range of discounts that you can use to lower your rate even further, including some discounts you won’t see elsewhere. For example, it offers discounts for engaged couples and people who work as EMTs.
Pros
Provides access to a broad network of exclusive agents
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
7.5 /10
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.
$101/mo
4.1
Best choiceBased on 50 verified guest reviews and ratings
Reviews (29)
Cookie
October 15, 2024
Verified Purchase
Excellent
Low mileage rate.
Tasha
October 10, 2024
Verified Purchase
Not pleased
Don't opt for this insurance if you're on a budget. I was unaware that this was a cost-per-mile insurance. I was never informed about it, and now I'm paying an extra $20 for roadside assistance that I thought was included. I had mentioned to the representative that I couldn't afford expensive insurance, yet the cost has increased.
Thomas
October 8, 2024
Verified Purchase
Mixed Review
Mixed. One representative was confusing and couldn't guide me regarding a text I received which stated my payment, which I had been informed had been processed, had actually gone through. To ensure I was covered, I made the payment. The previous representative had been professional and direct. So, I have a mixed reaction.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NR
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
NR
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NR
Why we picked this company
If you drive infrequently, you can consider buying pay-per-mile auto insurance from Mile Auto. The company charges a base rate plus a per-mile rate. Once a month, you’ll have to take a picture of your odometer and send it in to receive your premium bill.
Mile Auto is currently available in only a handful of states. And if you run into problems, you can’t get help from a local agent. Instead, you’ll need to call customer service between 9 a.m. and 6 p.m. in your local time zone. The company doesn’t advertise any discounts or offer any other types of coverage besides car insurance.
Pros
No telematics tracking device needed
Infrequent drivers can save with pay-per-mile car insurance
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.0 /10
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.
$55/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.
$121/mo
4.0
Best choiceBased on 10113 verified guest reviews and ratings
How drivers feel about GEICO
Drivers appreciate the excellent customer service and initial low prices but dislike the frequent price increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Teen drivers
Cheap rates
Accident forgiveness
How drivers feel about GEICO
Drivers appreciate the excellent customer service and initial low prices but dislike the frequent price increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Teen drivers
Cheap rates
Accident forgiveness
Reviews (5,563)
Herman
October 29, 2024
Verified Review
Excellent
For us, it came down to cost and having all of our insurance with the same company, not farmed out.
Greg
October 29, 2024
Verified Review
It's Expensive
It's expensive.
Robert
October 29, 2024
Verified Review
Unpleasant Experience on Cape Cod
My insurance has gone from $37 a month to $82. Stay far away from this company.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
835
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.74
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
If you like the idea of working with a widely recognized insurer and the ability to stay with your insurance company if you move states, GEICO is worth a look. The third-largest U.S. auto insurer by market share, GEICO is available in all 50 states and Washington, D.C.
Its rates for drivers with poor credit are competitive with those offered by smaller, regional insurers. And if you’re a safe driver, you could save even more with GEICO’s DriveEasy usage-based telematics program, which offers a signup discount of 15% and up to 25% off your premium.
Pros
Competitive rates and numerous available discounts
24/7 customer service
Cons
Gap insurance not available
May not be the cheapest option for drivers with moving violations
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.5 /10
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.
$35/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.
$76/mo
4.0
Best choiceBased on 137 verified guest reviews and ratings
How drivers feel about Auto-Owners
Drivers appreciate the friendly customer service, competitive initial rates, and professional agents but dislike the frequent price increases and complicated claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
How drivers feel about Auto-Owners
Drivers appreciate the friendly customer service, competitive initial rates, and professional agents but dislike the frequent price increases and complicated claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
Reviews (86)
Ronald W
October 29, 2024
Verified Review
They Cancelled Our Home Insurance
We had no problem with Auto-Owners regarding our auto insurance. However, we were disappointed when Auto-Owners cancelled our home insurance. They stopped all home insurance in 'fire prone areas'.
Martha
October 28, 2024
Verified Review
Good
The premiums keep increasing.
Lawrence
October 24, 2024
Verified Review
Honest Answers to Questions
Please refer to my answers to the previous questions.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
837
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.5
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
Available mostly in the Midwest and Southeast, Auto-Owners is a good option if you prefer working with an agent in person or over the phone. The company maintains a distribution network of about 48,000 local independent agents, and it’ll refer you to the closest one to you for a quote.
Auto-Owners also has a good reputation for customer satisfaction. It has a much lower-than-expected number of complaints on the National Association of Insurance Commissioner’s index and well-above-average customer satisfaction scores in the J.D. Power 2024 U.S. Auto Insurance Study.
Pros
Homeowners, pet, life, and other insurance products available
Low volume of customer complaints lodged with the NAIC
Cons
Available in only 26 states
Rideshare coverage not available
Find Car Insurance with Bad Credit
Liability coverage starts at $20/mo. for drivers with bad credit
Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Cheapest car insurance for drivers with bad credit
Finding affordable car insurance when you have bad credit can feel challenging, but shopping around for quotes from multiple insurers can help you find cheap coverage.
Here are the cheapest companies for people with a low credit score.
The below rates are estimated rates current as of: Sunday, September 1 at 12:00 PM PDT.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Why does your credit score affect car insurance rates?
Car insurance companies make pricing decisions based on the level of risk you pose, including your likelihood of having an accident and filing a claim. Studies have shown that people with bad credit tend to file claims more frequently than drivers with good credit.
The two are correlated, although having bad credit doesn’t directly causepeople to file more claims. Insurers may use credit history to generate a credit-based insurance score, which they then consider when deciding whether to approve or deny you for a policy. And if you’re approved, companies may also consider your credit score when setting your rates.
Due to concerns over the accuracy and fairness of the practice, four states ban or limit auto insurers from considering your credit score when you apply for car insurance:[2]
California
Hawaii
Massachusetts
Michigan
How credit-based insurance scores work
Car insurance companies don’t look at your consumer credit scores when setting rates. Instead, they use the information in your credit file to generate a credit-based insurance score. Each company has its own proprietary formula for generating an insurance score, so you can have more than one credit-based insurance score.
But all insurance companies use credit-based insurance scores to help predict how likely a driver is to file a claim and how much those claims might cost the insurer.
While you can easily get a free copy of your credit reports and see your credit scores, you might have a harder time seeing your credit-based insurance scores. You may be able to ask your current insurer or an insurance agent for yours.
Car insurance rates for bad credit by state
Here’s a look at how much you might pay on average each month for car insurance by state if you have bad credit, according to Insurify data.
The below rates are estimated rates current as of: Sunday, September 1 at 12:00 PM PDT.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Alternative options for drivers with bad credit
If you’re having a hard time finding standard coverage at a price you can afford because of your credit score, you can look into a few alternatives. Drivers with bad credit scores may benefit from insurers that don’t require credit checks, telematics driving programs, or non-standard car insurance coverage.
No-credit-check auto insurance
Insurers that don’t look at your credit are relatively rare. An estimated 95% of all car insurance companies use your credit information in states where it’s legal. Depending on where you live, you may not find insurers that don’t check your credit.
If you can find a no-credit-check insurance company, you should earn rates more in line with people who have better credit scores. Make sure to research the company to decide whether it’s good to work with.
Telematics
If you enroll in a telematics program, your insurer will receive information about your driving habits, including how often you drive, whether you safely accelerate and decelerate, and what time of day you typically drive. You usually need to plug a telematics device into your car or download your insurer’s mobile app to your phone and allow it to record your driving habits.[3]
If you’re a good driver, you can earn significant savings on your car insurance costs. Some companies offer discounts of 30% off or more. On the flip side, you may end up paying more if you don’t practice safe driving habits.
Non-standard car insurance
Some companies specialize in working with high-risk drivers, including people with bad credit or poor driving records. You can look to these insurers if one or more traditional insurance companies have denied issuing you a policy. Insurance from non-standard insurers that provide coverage to high-risk drivers typically costs more.
Cheapest recent rates for drivers with poor credit
Drivers have found policies from Freedom National, Certainly, GEICO, and more, for rates as low as $41/mo. through Insurify
*Quotes generated for Insurify users within the last 10 days. Last updated on October 30, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 30, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on October 30, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 30, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
How to boost your credit score
Good credit can have many advantages, including allowing you to qualify for lower car insurance rates. It’s impossible to go from bad credit to good credit overnight, but you can take steps to improve your standing over time, such as:
Pay your bills on time. Credit card companies, utilities, and other companies typically report consumer payment history to the credit bureaus. Always paying your bills on time is the most important thing you can do to build your credit.
Pay down credit card balances. Your credit utilization ratio — the percentage of credit you’re using compared to your total available credit — is a significant factor in credit scoring. Keeping credit card balances low — or better yet, paid in full — will improve your credit utilization and ultimately your credit score.
Avoid applying for too much credit. It’s a good idea to only apply for credit when you actually need it. To grant you a new credit account, creditors look at your full credit report. This is called a “hard inquiry.” Too many hard inquiries can lower your credit score.
Clean up credit report errors. Credit reports can have mistakes on them that negatively affect your credit score. Get free copies of your reports from the three major credit bureaus (Experian, Equifax, and TransUnion) and check for errors. If you spot any, contact the credit bureau in writing to have it corrected.
How to save on car insurance
You may pay more for coverage if you have bad credit, but you can still find ways to lower the cost of car insurance. Consider the following tips to earn cheaper coverage:[4]
Utilize discounts
Most insurance companies offer several discount options to benefit from. For example, you may save for using a telematics device, being a good driver, or completing a defensive driving course.
Drop unnecessary coverage
You need to meet theminimum level of coveragein accordance with your state law and lender or leasing company requirements (if you finance or lease your vehicle). Beyond that, it’s your choice to carry other coverage options. If you have an inexpensive or very old car, you may not need collision or comprehensive coverage.
Build good credit
If you have bad credit, you can work on building your credit by making on-time credit card payments, reviewing your credit report for any inaccuracies, and not applying for any new credit cards for a period of time.
Compare multiple quotes
Each company sets prices differently, so you should get quotes from several insurers to find the best option for you.
Drivers with bad credit FAQs
Though drivers with bad credit typically pay higher rates than people with good credit, you can still find affordable coverage. The following information should help you understand how your credit history can affect your car insurance rates.
Does Progressive check credit?
Yes. If you apply for a car insurance policy from Progressive, the insurer will check your credit. Progressive says it analyzes credit report information along with accident and insurance claim histories. The company also says that “favorable credit factors” — like a long record of credit use, multiple accounts in good standing, low use of available credit, and no late payments or past-due accounts — will result in lower premiums.
Does applying for car insurance hurt your credit score?
No, not usually. Most insurers rely on a soft credit pull when you check your rate and apply for car insurance. Soft credit pulls show up on your credit report but won’t affect your credit score.
Can you be denied car insurance due to credit history?
Yes. Car insurance companies can deny issuing you a policy based on a poor credit profile. If that happens, the Fair Credit Reporting Act requires the insurer to send you a letter telling you why you were denied, where it got your credit report, and how to get a free copy of your own so you can double-check it for accuracy.
Can you get car insurance with bad credit?
Yes. You can get car insurance if you have bad credit. But you may face higher premiums than someone with good credit. Insurers may also deny you coverage. Some insurers don’t require credit checks during the application process.
Do insurance companies check your credit score?
Most car insurance companies will check your credit history when you apply for coverage, but they don’t look at your credit score. Instead, they use the information in your credit history to generate a credit-based insurance score. Insurers can use this information to approve or deny your application and decide what price to charge you.
Can you build a credit score with car insurance?
No. Your car insurance payments won’t help you improve your credit, unfortunately. But not paying for your coverage can have a negative effect on your credit history. If your insurer notifies a collection agency of an unpaid bill, the agency may report that overdue payment to the credit bureaus as a debt that you owe. That can seriously affect your credit score.
Do any car insurance companies specialize in providing coverage for drivers with bad credit?
Yes. Some high-risk insurers specialize in providing insurance for people who have trouble finding coverage through traditional insurance companies. But these companies typically charge much higher rates.
Lindsay VanSomeren is a freelance personal finance writer living in Suquamish, WA. Her work has appeared with FICO, Credit Karma, The Balance, and more. She enjoys helping people learn how to manage their money better so they can live the life they want.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
Mark FriedlanderDirector, Corporate Communications, Triple-I
Corporate communications director for Insurance Information Institute
20+ years in insurance and communications
As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
)
){kind=logo}
){kind=small}
)
)
)
)
)
)
)
)
)
)