Best Car Insurance for Drivers with Bad Credit in 2026

If you have bad credit, you might find yourself paying higher premiums for car insurance. This is because, in most states, insurers use your credit history to determine your monthly rates.

According to data from Bankrate, drivers with poor credit (a FICO score below 579) typically pay 118% more for full coverage compared to those with excellent credit (a FICO score of 800+).

After reviewing over 20 major auto insurance providers, CNBC Select has highlighted the best options for drivers with lower credit scores. These insurers were evaluated based on factors like rates, coverage options, availability, and more.

Best for Affordability: Geico

Who should consider this?
Geico offers the most affordable average rates for drivers with bad credit, making it a top pick for those looking to save.

Key Benefits:

• Safe-Driving Discount: Save up to 22% if you remain accident-free for 5 years.

• Multi-Vehicle Discount: Insure more than one vehicle with Geico and enjoy a 25% discount.

• Special Discounts: Federal employees and military members can receive additional rate reductions.

Average Rate for Poor Credit Drivers:
$3,268 per year

Best for Discounts: Amica

Who should consider this?
Amica offers rates 30% lower than the industry average for drivers with bad credit. With over 18 available discounts, Amica gives you multiple ways to save.

Key Benefits:

• Bundling Discount: Save up to 30% by combining auto insurance with life, home, or renters insurance.

• Additional Savings: Homeowners and vehicles with safety features like electronic stability controls can earn even more discounts.

Average Rate for Poor Credit Drivers:
$2,861 per year

Best for Drivers with Tickets: First Acceptance

Who should consider this?
First Acceptance specializes in high-risk drivers who have trouble finding coverage elsewhere. This includes drivers with bad credit, speeding tickets, accidents, and DUIs.

Key Benefits:

• SR-22 Certificates: For drivers who need a certificate of financial responsibility after serious violations.

Average Rate for Poor Credit Drivers:
Not Available

Best for Drivers with Accidents: Dairyland

Who should consider this?
Dairyland is an excellent choice for high-risk drivers, especially those with at-fault accidents on their record.

Key Benefits:

• Unique Coverage Options: Offers non-owner coverage, SR-22 certificates, and limited coverage for travel in Mexico (for California policies).

Average Rate for Poor Credit Drivers:
Not Available

Best for Infrequent Drivers: Nationwide

Who should consider this?
If you drive less than 13,000 miles per year, Nationwide’s SmartMiles pay-per-mile program can save you up to 30% compared to traditional car insurance.

Key Benefits:

• SmartRide Program: Tracks driving behavior and rewards safe habits with discounts of up to 40%.

Average Rate for Poor Credit Drivers:
$2,635 per year

How Your Credit Score Affects Car Insurance Rates

Studies have shown that your financial habits are a good indicator of the likelihood of filing an insurance claim. As a result, most insurance companies use your credit history to assess your "credit-based insurance score." (Note: California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon, and Utah restrict the use of credit history for insurance purposes.)

Although your credit-based insurance score isn’t the same as your FICO score, the two are closely related. A higher credit score typically results in a higher insurance score.

LexisNexis Insurance Score
LexisNexis assigns insurance scores between 200 and 997. A score of 770 or above typically leads to the best rates, while a score of 500 or below could result in higher premiums or difficulty getting coverage.

Insurance Score Range and Ratings

• 770-977: Good

• 626-769: Average

• 501-625: Below Average

• 200-500: Poor

You can request your LexisNexis Consumer Disclosure Report to find your insurance score.

FICO Insurance Scores
FICO also calculates insurance scores, which are based on these five factors:

1. Credit History (40%)

2. Current Level of Debt (30%)

3. Length of Credit History (15%)

4. New Credit (10%)

5. Credit Mix (5%)

FICO does not provide insurance scores to consumers directly, but you can request this score from your insurer.

Tips to Improve Your Credit Score

Since your credit history accounts for up to 40% of your insurance score, improving your credit can be the most effective way to reduce your insurance premiums.

1. Make On-Time Payments
On-time payments are the largest factor in your credit score. Maintaining a history of timely payments will improve your credit and help avoid late fees and interest charges.

2. Request Higher Credit Limits
Raising your credit limit without increasing your spending lowers your credit utilization ratio, which can boost your score.

3. Avoid Opening New Credit Lines
Applying for new credit can result in hard inquiries that negatively impact your credit score. Additionally, new credit lines reduce the average age of your accounts.

4. Review Your Credit Report for Errors
Credit report mistakes are common and could lower your score. Check reports from all three credit bureaus — Experian, Equifax, and TransUnion — to ensure your information is accurate.

By considering these tips and choosing the right insurer, drivers with bad credit can still find affordable car insurance coverage without compromising on protection.