Where To Buy Cheap Car Insurance – Having bad credit makes car insurance more expensive, but it is still possible to get affordable insurance. We found that MAPFRE has the cheapest bad credit car insurance at $125 a month.
But MAPFRE is only available in 18 states, so GEICO may be a better option for cheap car insurance for drivers with poor credit. USAA, NJM, and Nationwide are also affordable options.
Where To Buy Cheap Car Insurance
In many states, car insurance companies charge bad credit drivers for car insurance because it is one of the factors that can increase the chance of a future claim. Auto insurance companies technically look at the insurance score, which takes credit into account.
Steps To Cheaper Car Insurance Rates
We found the cheapest bad credit driver companies by analyzing rates from Quadrant Information Services. These estimates were for all ZIP codes in the country and were for the following insurance rates:
Our sample driver was a 30-year-old single driver who drove a 2017 Toyota Camry and had a credit score of less than 578.
Some carriers may be represented by subsidiaries or affiliates. Estimates given are sample costs. Your actual quotes may vary.
On average, car insurance for drivers with bad credit can cost thousands of dollars more per year than someone with a better credit score. That price difference means it’s even more important for drivers with poor credit to compare rates and find their cheapest company.
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Score How we score: ‘ the score is determined by our editorial team. Our approach considers many factors, including pricing, financial ratios, quality of customer service, and other factors related to a specific product.
MAPFRE has the cheapest car insurance for drivers with bad credit, but it’s only available in 18 states. Despite its low average rates of drivers with bad credit, MAPFRE also receives fewer complaints than average from policyholders.
We found that MAPFRE has the cheapest car insurance for drivers with bad credit. With MAPFRE, car insurance averages $125 per month for drivers with bad credit. That’s $1,613 more per year than the average rate for bad credit auto insurance.
MAPFRE also has a reputation for good customer service. According to the National Association of Insurance Commissioners, MAPFRE receives far fewer policyholder complaints than most companies.
Average Cost Of Car Insurance (2023)
But another challenge for MAPFRE is that it does not provide insurance everywhere. Available in the following states only:
GEICO has the best insurance rates for bad credit drivers of any company nationwide. This means that although it doesn’t generally have the cheapest rates, it is the best choice for many drivers with poor credit.
GEICO has some of the best bad credit auto insurance rates. On average, insurance from GEICO costs $157 per month, or $1,232 less per year than the average for drivers with bad credit. If you qualify for discounts from GEICO, it may be lower.
And unlike some of its competitors, GEICO offers car insurance in every country. And it’s $156 cheaper per year than the next cheapest major insurance provider.
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If you’re having trouble getting insurance because of your bad credit, Kemper may have your best rates. But, like other unconventional companies, Kemper’s customer service is not highly praised.
Kemper is an unconventional insurance company, meaning it covers high risk drivers who may not be able to get insurance elsewhere. The average cost of bad credit car insurance from Kemper is $224 per month, which is $431 less than the average per year.
Although Kemper offers affordable car insurance even to drivers with bad credit, it receives more complaints than average. However, with low prices and a very good measure of financial strength, a reputable company where high risk drivers can be paid despite bad or bad scores.
We found that GEICO has the cheapest car insurance for drivers with bad credit in 22 states. That’s how it compares to another company, but drivers may also find that USAA or Nationwide have cheaper rates where they live.
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The average cost of car insurance for drivers with bad credit is $260 per month, but many companies have much lower rates.
Since a driver’s credit score is one of the factors insurers use to set rates, your credit score has a direct impact on what you pay for insurance.
In many states, drivers with bad credit pay more for car insurance than drivers with high credit scores. In fact, someone with bad credit can pay $1,000 more per year for car insurance than someone with fair credit.
There are also some states where insurance companies are not allowed to take your credit score into account when setting your rates. In these states, your rates may be determined by other factors such as your age and gender, your driving record, and claims history.
Very Cheap Car Insurance No Deposit
No, you can get car insurance quotes and compare rates without affecting your credit. Insurance companies do what’s called a soft inquiry or pull when you get quotes instead of asking hard, like applying for a credit card. A soft inquiry appears on your credit record but does not affect your score at all.
There is no such thing as no credit check car insurance. As long as you live in a country that doesn’t have laws about it, almost all insurance companies will look at your credit score (and use your credit to set your rates) before insuring you.
Some smaller companies may not check your credit, but there’s a good chance these companies will charge higher rates anyway.
That said, some companies may not place much value on your credit. Usage-based insurance companies, such as Root, which has pledged to end the use of credit scores by 2025, set rates based primarily on your driving habits.
Cheap Car Insurance For Young Drivers
If you have bad credit (and pay high insurance premiums because of it) you can take steps to improve your credit score.
It takes time to get a better score, but your car insurance can be much cheaper, even if you go from a bad score to a fair or average credit score.
On the other hand, if you have average credit, make sure you don’t let your credit score go down. Your insurance won’t be more expensive after your credit score goes down, but your rates will be higher because of your credit when you renew your policy.
Improving your credit takes time, but there are ways you can get cheap insurance in the meantime. You can reduce the cost of your car insurance (even bad credit) by doing this:
Ways To Get The Cheapest Car Insurance Rates
We found that MAPFRE has the cheapest rates for drivers with poor credit. But since MAPFRE is offered in every state, GEICO may have the cheapest quotes for additional drivers.
There is no one good credit score for insurance. That said, drivers with good credit scores will pay higher rates than someone with a very good score, someone with a fair credit score will have higher costs than someone with a good score, etc.
Insurance companies do not have to insure you if your credit score is too low. If you don’t live in one of the states that have laws about insurance companies using your credit to set your rates, you can still find some companies that won’t deny your credit score.
Rachael Brennan is a senior editor and licensed auto insurance specialist at . His work has also appeared in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.
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Andrew Hurst is a senior editor and licensed auto insurance specialist at . His work has also appeared in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.
Anna Swartz is a senior managing editor and auto insurance expert at , where she oversees our auto insurance. Before that, he was a senior staff writer at Mic.com, and a contributing writer at The Dodo.
Ian Bloom, CFP®, RLP®, is a certified financial planner and member of the Financial Review Council at . Previously, he was a financial advisor at MetLife and MassMutual.Andrew Hurst Andrew Hurst Senior Editor and Licensed Auto Insurance Expert Andrew Hurst is a senior editor and licensed auto insurance expert at . His work has also appeared in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.
Anna Swartz Anna Swartz Senior Managing Editor and Auto Insurance Expert Anna Swartz is a senior managing editor and auto insurance expert at , where she oversees our auto insurance offering. Before that, he was a senior staff writer at Mic.com, and a contributing writer at The Dodo.
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We found that GEICO has the cheapest liability-only car insurance for most drivers who want minimal coverage (meaning the minimum coverage required by law). Car Owners generally has the cheapest liability insurance, but it’s not available in all states.
A liability only insurance policy means a policy that does not include comprehensive or collision insurance. With liability only insurance, you are only covered for damages you cause to others
