Best car insurance for bad credit in 2024 (2025)

In all but a handful of states, car insurance companies use a version of your credit score to determine your monthly premiums.

Not surprisingly, those with lower credit-based insurance scores usually pay more: According to data from Bankrate, drivers with bad credit (a FICO score below 579) pay 118% more on average for full coverage than those with excellent credit (a FICO score of 800 or above).

CNBC Select analyzed leading auto insurers and chose five standouts based on their rates for drivers with lower credit scores, as well as coverage options, availability, customer service and other factors. (See our methodology for more on how we chose the best companies.)

Who's this for?Geico has the cheapest average rates of the companies we reviewed for drivers with bad credit.

Standout benefits: Geico's safe-driving discount can save you up to 22% if you remain accident-free for five years. Putting more than one vehicle on your Geico policy can knock 25% off your premium. There are also rate reductions for federal employees and members of the U.S. military.

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Who's this for?Amica has 18 discounts for auto insurance customers, making it a good option for cutting costs.

Standout benefits:Enjoy a bundling discount of up to 30% if you have life, home or renters insurance with Amica. You can also get a break if you're a homeowner or your car has collision alerts, electronic stability controls or other safety features.

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Who's this for? First Acceptance specializes in high-risk drivers who find it hard to get coverage elsewhere, including drivers with bad credit, speeding tickets, at-fault accidents and DUIs.

Standout benefits:If you've had serious violations and need a certificate of financial responsibility, First Acceptance issues SR-22 forms.

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Who's this for? Dairyland insures high-risk drivers and could be a good fit if you have an at-fault accident on your driving record.

Standout benefits:The Wisconsin-based company offers types of coverage many other insurers don't, including non-owner coverage, SR-22 certificates and limited coverage for travel in Mexico on all California policies.

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Who's this for? If you drive less than 13,000 miles a year SmartMiles from Nationwide is a pay-per-mile program that could save you 30% over traditional car insurance.

Standout benefits:Nationwide also offers SmartRide, which tracks your behavior behind the wheel and offers up to 40% off for good driving habits.

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Now a subsidiary of Berkshire Hathaway, Geico has been insuring drivers since 1936. It received an A+ from the Better Business Bureau and has far fewer complaints than similarly sized providers, according to the National Association of Insurance Commissioners (NAIC).

Nationwide availability: Available in all 50 U.S. states and the District of Columbia

Average annual rate for drivers with poor credit: $2,447 per year

J.D. Power claims satisfaction rating: Below average

A.M. Best rating: A++

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Amica was founded in 1907 as the Automobile Mutual Insurance Company of America. It ranked number one in J.D. Power's 2023 U.S. Auto Claims Satisfaction Study and was the highest-ranked provider for overall customer satisfaction in the New England region. Amica receives fewer complaints about auto insurance than similarly sized competitors, according to the NAIC

Nationwide availability: Available in all states except Hawaii.

Average rate for drivers with poor credit: $2,861 per year

J.D. Power claims satisfaction rating: Above average

A.M. Best rating: A+

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Tennessee-based First Acceptance specializes in auto, renters and life insurance for high-risk customers. It has far more than the expected number of complaints for an insurer its size, according to the NAIC, but received an A+ from the Better Business Bureaus.

Nationwide availability: Available in Alabama, Arizona, California, Florida, Illinois, Indiana, Georgia, Mississippi, Ohio, Pennsylvania, South Carolina, Texas, Tennessee and Virginia.

Average rate for drivers with poor credit: N/A

J.D. Power claims satisfaction rating: N/A

A.M. Best rating: C++

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A subsidiary of Sentry Insurance, Dairyland has been offering auto insurance since 1953 and specializes in motorists with poor driving records and low credit scores. While Dairyland was not rated by J.D. Power, it received an A+ from the Better Business Bureau.

Nationwide availability: Available in 38 states

Average rate for drivers with poor credit: N/A

J.D. Power claims satisfaction rating: N/A

A.M. Best rating: A+

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Columbus, Ohio-based Nationwide began insuring vehicles in 1926 as the Farm Bureau Mutual Automobile Insurance Company. It has fewer complaints about auto insurance than other companies its size, according to the NAIC, and received an A+ from the Better Business Bureau.

Nationwide availability: Available in every state except Alaska, Hawaii, Louisiana and Massachusetts

Average rate for drivers with poor credit: $2,606 per year

J.D. Power claims satisfaction rating: Below average

A.M. Best rating: A

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Actuarial studiesindicate that how people manage their finances is a good indicator of whether they'll file an insurance claim. In most states, therefore, insurance companies analyze your credit history to determine what's known as an insurance score. (California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utahprohibit or restrictinsurers from using credit-based insurance scores.)

To find out your LexisNexis insurance score, you can reach out to LexisNexis and request yourConsumer Disclosure Report.

FICO also has an algorithm to calculate insurance scores. It considers five factors, each assigned a different weight.

• Credit history:40%
• Current level of debt:30%
• Length of credit history:15%
• New credit:10%
• Credit mix:5%

FICO doesn't make its insurance scores available to consumers, but you can ask a current or prospective insurer to share yours.

Your credit history typically accounts for 40% of your insurance score. So the easiest way to improve your insurance score isby improving your credit.

• Make on-time payments in full. Payment history is the largest segment of your credit score. A strong track record of on-time payments can boost your credit. (You'll also avoid late fees and interest charges.)
• Request higher credit limits. If you raise your credit limit without spending more, it'll lower your credit utilization ratio
• Hold off on new lines of credit. Applying for a loan or credit card could require a hard credit inquiry, which can ding your credit score. If you're approved, it will also lower the average age of your accounts.
• Check your credit report for errors. Mistakes in credit reports are common and, while most are benign, some can damage your credit. Because the main credit-reporting agencies — Experian, Equifax and TransUnion — collect information independently, you should review your report with all three.

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To determine the best insurance companies, CNBC Select analyzed dozens of insurance companies and compared them based on various factors, including cost, coverage, availability, ease of use and customer satisfaction

While narrowing down the best car insurance companies, we used a sample premium from Bankrate fora driver with a 580 credit score and incorporated customer satisfaction ratings from J.D. Power., theNational Association of Insurance Commissionersand the Better Business Bureau.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

From there, we sorted our recommendations by the best for affordability, for discounts, for drivers with speeding tickets, for drivers with at-fault accidents and for infrequent drivers.

Note: Premiums and policy structures cited for auto insurance companies are subject to fluctuate with company policy.

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