Best Car Insurance for Bad Credit 2025

Best Car Insurance for Bad Credit 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.)

Best car insurance for bad credit   

Best for affordability: Geico  

Geico Auto Insurance

  • Cost

    The best way to estimate your costs is to request a quote

  • App available

  • Policy highlights

    Geico auto coverage is available in all 50 states and the District of Columbia. It offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.

Pros

  • Low average rates
  • Can buy and manage policies online
  • Available nationwide

Cons

  • No gap insurance or rideshare insurance
  • Fewer branches for in-person services
  • Pay-per-mile car insurance not available

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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Best for discounts: Amica

Amica Auto Insurance

  • Cost

    The best way to estimate your costs is to request a quote

  • App available

  • Policy highlights

    Amica offers full and minimum coverage auto insurance, with add-ons accident forgiveness and new car replacement. The Platinum Choice® Auto plan includes new car replacement, credit monitoring and rental coverage with no daily limit.

Pros

  • High customer satisfaction ratings from J.D. Power
  • Bundling home and auto can save you up to 30%
  • Drivers in some states are eligible for dividends

Cons

  • More higher-than-average rates for most driver types
  • Switching from 12-month policies to 6-month

Who’s this for? Amica’s rates for drivers with poor credit are 30% below the industry average. The insurer also has 18 discounts for auto insurance customers, enabling you to save even more.

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 electronic stability controls or other safety features.

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Best for drivers with tickets: First Acceptance

First Acceptance Auto Insurance

  • Cost

    The best way to estimate your costs is to request a quote

  • Policy highlights

    First Acceptance Insurance Company has been underwriting insurance policies since 1969. It specializes in coverage for high-risk motorists, young drivers and those with bad credit.

  • App available

Pros

  • Competitive rates for high-risk drivers
  • SR-22 certificate available
  • Flexible payment schedules

Cons

  • Limited number of endorsements
  • Not available in all states
  • High volume of complaints

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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Best for drivers with accidents: Dairyland

Dairyland Auto Insurance

  • Cost

    The best way to estimate your costs is to request a quote

  • App available

  • Policy highlights

    Founded in 1953, Dairyland offers auto insurance in 38 states and specializes in high-risk drivers. Offerings include non-owner car insurance policies, coverage for motorcycles and off-road vehicles and limited Mexico coverage on all California policies.

Pros

  • Insures high-risk drivers
  • Offers coverage for motorcycles and off-road vehicles
  • Limited Mexico coverage included with California policies
  • Lower volume of complaints

Cons

  • Not available in all 50 states
  • Higher-than-average rates
  • Limited number of discounts

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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Best for infrequent drivers: Nationwide

Nationwide Auto Insurance

  • Cost

    The best way to estimate your costs is to request a quote

  • App available

  • Policy highlights

    Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.

Pros

  • Available in 46 states and the District of Columbia
  • Lowest average premiums for full coverage
  • Quotes available online

Cons

  • High average premium for minimum coverage
  • Not available in all states
  • Lower than average scores from J.D. Power’s customer satisfaction survey

Shop for car insurance that’s right for you

More on our top car insurance for bad credit

Geico

Amica

First Acceptance

Dairyland

Nationwide

How your credit affects your insurance rate

Insurance score range Rating
770-977 Good
626-769 Average
501-625 Below average
200-500 Poor

To find out your LexisNexis insurance score, you can reach out to LexisNexis and request your Consumer 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.

How to improve your credit score  

FAQs

Do car insurance companies check your credit score?

Car insurance companies in most states consider your credit-based insurance score when deciding on approvals and rates, along with your driving record, age, location, previous claims and other factors.

What states don’t allow insurers to use credit scores?

California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utah prohibit or restrict insurance companies’ use of credit in calculating rates.

What credit score do you need for car insurance?

While there’s no set minimum score to get car insurance, you’ll pay more if you have a lower score. Drivers with a credit score of 580 or below pay about 115% more for full coverage than the average driver with a credit score of 800 or above, according to Bankrate.

Does applying for car insurance hurt my credit score?

While insurance companies check your credit during the quote process, it’s a soft inquiry that doesn’t show up to lenders or change your credit score.

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Why trust CNBC Select? 

Our methodology  

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.


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