Car Insurance for People with Bad Credit

Car insurance for people with bad credit can be tricky, but it's still possible to find affordable rates if you do the research. Most insurance companies consider the dividing line between a good and bad credit score between 600 and 650, and preferential rates are given to applicants with progressively higher credit scores. Read our guide and enter your ZIP code below to find affordable auto insurance with bad credit.

Free Insurance Comparison

secured lock Secured with SHA-256 Encryption

Chris Tepedino is a feature writer that has written extensively about home, life, and car insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and C...

Full Bio →

Written by Chris Tepedino
Insurance Feature Writer Chris Tepedino

Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

Full Bio →

Reviewed by Laura Walker
Former Licensed Agent Laura Walker

UPDATED: Jul 16, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

Getting car insurance for those with bad credit involves doing a little more research to find a company that can meet your needs and stay within your budget. It is no secret that car insurance rates get affected by your credit score, but you might be surprised to find out that insurance, even with bad credit, is more affordable than you thought it would be.

Bad Credit and Car Insurance

Your credit score is one of the factors insurance companies use to determine what your individual rates will be. Most insurance companies consider the dividing line between a good and bad credit score to be between 600 and 650, and preferential rates are given to applicants with progressively higher credit scores. This adjustment based on your credit is common in financial transactions, including insurance, loan applications and mortgage loans. The best solution, financially, is to bring up your credit score, but you can lower your car insurance by rethinking your policy.

The obvious solution is to improve your credit score by paying down your debts and to work on a way to manage your finances better. While this solution is the best fix, there are still other ways you can ensure you’re getting the lowest possible car insurance rates.

Special Discounts Save Money

One way to get cheaper car insurance for people with bad credit is to have multiple lines of insurance with the same company. For example, car insurance and renter’s insurance policies, when both are purchased through the same company, will earn you savings on your premiums. Similarly, keeping the same policy through multiple renewals will earn you a customer loyalty discount.

Using Deductibles to Manage Premiums

You can also lower your premiums by setting a higher deductible. By electing to pay more of the cost of a claim out of pocket, you become less of an insurance risk, and the savings get passed back to you. Be careful not to set your deductibles higher than you are prepared to pay at a moment’s notice, or you could find that the claim cannot be settled until you come up with the money for the deductible.

Drop Unnecessary Coverage

If your policy includes types of coverage that you no longer need, you can lower the cost of coverage by dropping the excess coverage. Collision insurance may not be necessary if you are driving an older car, for example. As another example, older cars may not need the same level of coverage, and optional plans such as comprehensive coverage could be dropped to bring the cost of car insurance back in line with what you would like to pay.

Free Insurance Comparison

Compare quotes from the top insurance companies and save!

secured lock Secured with SHA-256 Encryption