The cheapest insurers, on average, for drivers with poor credit are Nationwide and GEICO. A full coverage policy with Nationwide costs our sample driver $1,249 per year. The cheapest company may depend on where you live. We recommend looking at the cheapest insurance companies by state.
Among major carriers, GEICO is cheapest for drivers with poor credit, coming in at $157 per month. Nationwide comes in at second place with a rate of $167 per month for drivers with poor credit. Only slightly higher than Nationwide, USAA comes in third place for drivers with poor credit with rates of $168 per month.
Yes, you can be denied car insurance coverage if you have bad credit. However, most companies will likely give you a higher insurance premium if you have low credit scores.
Yes, Geico does use your credit score as a factor when determining your car insurance rates, as do most major insurers. However, credit checks by auto insurers do not harm your credit score and are only done in states where it is legal for your credit score to affect your rates.
Insurance companies in California don't use credit-based scores or your credit history for underwriting or rating auto policies, or setting rates for homeowners insurance. As a result, your credit won't impact your ability to get or renew a policy, or how much you pay in premiums.
Cheapest car insurance companies for drivers with bad credit
Based on our research, Geico, Nationwide, Mercury, Amica and Travelers are some of the cheapest providers for drivers with bad credit.
If you're denied insurance, the first step is to call another insurer—different companies have different parameters. However, if several insurers have denied you, you may need to consider these options: Join a state assigned risk pool – Auto insurers participate on a voluntary basis in state assigned risk pools.
Yes, Liberty Mutual does use your credit score as a factor when determining your car insurance rates, as do most major insurers. However, credit checks by auto insurers do not harm your credit score and are only done in states where it is legal for your credit score to affect your rates.
Since the 1980s, Allstate has used credit information as a way to evaluate insurance applications. Since then, our experience has confirmed that people with better insurance scores tend to have fewer insurance losses.
All major car insurance companies — including GEICO, Progressive and State Farm — do a credit check during the quoting process. In fact, credit is one of the major rating factors used by underwriters when determining car insurance rates.
Otto Insurance is not an insurance company that issues its own policies.. It's a lead-generation website that partners with a number of providers that offer several types of coverage, including car insurance.
If getting a cheap quote is your top priority and you're a safe driver, Root is a good option for car insurance. A usage-based programs company, Root uses a mobile app to monitor your driving during a test-drive period and tailors your car insurance rates based on your performance.
Yes. A federal law, the Fair Credit Reporting Act (FCRA), states insurance companies have a “permissible purpose” to look at your credit information without your permission. Insurance companies must also comply with state insurance laws when using credit information in the underwriting and rating process.
State Farm is the cheapest large auto insurance company in the nation for good drivers, according to NerdWallet's 2024 analysis of minimum coverage rates. State Farm's average annual rate was $471 or about $39 per month.
Cheapest car insurance companies for bad drivers
Full coverage from State Farm costs 33% less than the national average after a ticket, and 38% less after an accident. Progressive has the cheapest widely-available rates after a DUI, at 30% less than average. Some drivers can get even cheaper rates from Erie or USAA.
California, Hawaii, Massachusetts and Michigan don't allow insurance companies to use credit to determine car insurance rates.
Other options with no credit check
Verizon, T-Mobile and AT&T each offer multi-line cell phone plans with shared or unlimited data.
Many factors contribute to Allstate being expensive, including rising costs for insurance companies and the way it pays its agents. Damage claims and payouts also factor into its higher-than-average rates.
Does Progressive check credit history when my policy renews? In states where it is allowed or required by law, we periodically review policies, including credit history.
Yes, USAA does use your credit score as a factor when determining your car insurance rates, as do most major insurers. However, credit checks by auto insurers do not harm your credit score and are only done in states where it is legal for your credit score to affect your rates.
One possible reason for denial could be insufficient evidence. Liberty Mutual may require specific documentation or proof of the accident, such as police reports or medical records of things like brain injuries or post-traumatic stress disorder, which you failed to provide. Another reason could be a policy exclusion.
Common examples of uninsurable risks include war, certain types of nuclear accidents, acts of terrorism, certain natural disasters, and strategic business risks like changes in consumer preferences.
You may have a problem getting insurance if you have a complex medical history, are elderly or have criminal convictions. You may also have difficulty getting building insurance to cover flood damage if your property has suffered damage in the past or if there is a history of flooding in your neighbourhood.
An uninsurable risk is a risk that insurance companies cannot insure (or are reluctant to insure) no matter how much you pay. Common uninsurable risks include: reputational risk, regulatory risk, trade secret risk, political risk, and pandemic risk.