Insurance Curator Bad credit can dramatically raise the price of car insurance—but it doesn't have to shut you out of affordable coverage. This guide, focused on U.S. drivers (with state examples for California, Texas and Florida), explains how insurers price risk, shows which companies are more forgiving of poor credit, provides realistic price ranges, and gives actionable tips to lower your premium.
Contents
- How bad credit affects your car insurance rates
- By the numbers: typical premium impact
- Top insurers for drivers with bad credit (with estimated costs)
- Practical steps to lower premiums fast
- State notes: California, Texas, Florida
- When to shop nonstandard carriers and SR-22s
How bad credit affects your car insurance rates
Insurers use many factors to set rates: driving record, age, vehicle, coverages, ZIP code—and in most states, credit-based insurance scores. A lower credit score signals higher claim risk in insurers’ models, so drivers with poor credit often pay noticeably more.
- Typical score usage: Most major insurers (GEICO, State Farm, Progressive) use credit-related scores in states where it's allowed. Exceptions exist by state.
- Nonstandard carriers (The General, SafeAuto, Dairyland) specialize in higher-risk drivers and generally accept lower credit scores—but at higher premiums.
Sources that quantify this relationship include analyses from ValuePenguin and NerdWallet (see links at the end). For transparency: expect a 30%–100% uplift in premiums depending on how low your credit is and where you live (lower end in states with protections; higher end with multiple risk factors like recent accidents or DUIs).
(See national averages and studies from ValuePenguin and NerdWallet for details: https://www.valuepenguin.com/car-insurance/credit-score-affect-car-insurance, https://www.nerdwallet.com/article/insurance/average-cost-of-car-insurance)
By the numbers: typical premium impact
The base national average for full-coverage car insurance often falls in the $1,300–$2,000 per year range for drivers with good credit and a clean record. With bad credit, expect to pay more. The following table gives conservative, state-focused estimated annual ranges for full coverage for drivers considered "bad credit" (credit scores in the "poor" category):
| State | Typical full-coverage (good credit) | Estimated full-coverage (bad credit) |
|---|---|---|
| California | $1,400–$1,900 | $1,400–$2,200* (credit score often not used in CA) |
| Texas | $1,700–$2,200 | $2,200–$3,800 |
| Florida | $2,200–$3,500 | $3,000–$5,500 |
*California and a few other states restrict or ban the use of credit-based insurance scores, so bad credit often has a smaller effect there.
Sources: national/state averages and credit-impact studies (Bankrate, NerdWallet, ValuePenguin). See Bankrate for state averages: https://www.bankrate.com/insurance/car/how-much-car-insurance-cost/
Top insurers for drivers with bad credit — who to consider
Below are common insurers grouped into mainstream and nonstandard carriers, with notes on likely affordability, accessibility, and a rough price expectation for a bad-credit driver in a typical urban ZIP. These are estimates; get quotes for precise pricing.
| Insurer | Type | Who it's best for | Estimated annual premium (bad credit, CA / TX / FL) |
|---|---|---|---|
| GEICO | Mainstream | Drivers with some blemishes but decent driving history | CA: $1,600–$2,200 · TX: $2,400–$3,400 · FL: $3,200–$4,800 |
| State Farm | Mainstream | Drivers who prefer agent service; good for bundling | CA: $1,700–$2,300 · TX: $2,500–$3,500 · FL: $3,200–$4,900 |
| Progressive | Mainstream | Drivers who can use Snapshot telematics to lower rates | CA: $1,700–$2,400 · TX: $2,400–$3,600 · FL: $3,000–$5,000 |
| USAA | Mainstream (military only) | Active/retired military families—typically the cheapest | CA: $800–$1,200 · TX: $900–$1,400 · FL: $900–$1,600 (eligibility required) |
| The General | Nonstandard | Drivers with very poor credit or recent license issues | CA: $2,200–$3,800 · TX: $2,800–$4,500 · FL: $3,500–$6,000 |
| SafeAuto / Dairyland | Nonstandard | Low-cost SR-22 or basic state-minimum coverage | CA: Varies · TX: $2,400–$4,200 · FL: $3,500–$6,000 |
Notes:
- USAA consistently posts lower rates but eligibility is limited to military families.
- Progressive and GEICO offer telematics programs (Snapshot, DriveEasy) that can reduce rates for safe drivers.
- Nonstandard carriers (The General, SafeAuto) often give immediate access to policies when mainstream insurers decline but at higher cost.
- Prices are sample estimates; actual quotes vary widely by model year, miles driven, driving record, and ZIP code.
For a broader provider comparison, see: Best Insurance For Cars by Provider: Comparing GEICO, State Farm, Progressive and USAA
Practical steps to lower premiums quickly
If you have bad credit, follow these prioritized actions to reduce your premium:
- Shop and compare quotes (every insurer weights factors differently) — get at least 6 quotes.
- Ask about usage-based/telematics discounts (Progressive Snapshot, GEICO DriveEasy).
- Increase your deductible (move from $500 to $1,000 can save 15%–30%).
- Drop collision/comprehensive on older low-value cars (weigh replacement costs vs. premium).
- Bundle auto with renters/home insurance for multi-policy discounts.
- Pay annually or in full to avoid installment fees (some insurers add fees for monthly payments).
- Remove unnecessary drivers or younger drivers from the policy if possible.
- Take a defensive driving or accident-avoidance course (many carriers offer discounts).
- Improve your credit score over time—every 50–100 points can materially lower premiums.
- Keep claims to a minimum and maintain a clean driving record.
Estimated savings: A telematics discount or deductible increase can cut your premium by 10%–30%. Bundling and defensive-driving discounts commonly contribute 5%–15% each.
State notes & actionable guidance
- California: Credit-based insurance scores are restricted in California. If you live in Los Angeles, San Francisco, or elsewhere in CA, poor credit typically has less direct effect on car insurance pricing—driving record and location play bigger roles. (Check state DOI for updates.)
- Texas: Drivers in Houston, Dallas, San Antonio often face higher premiums due to theft and accidents; bad credit compounds this—shop nonstandard carriers if mainstream decline you.
- Florida: Among the most expensive states. High claim frequency and litigation increases baseline premiums; bad credit can make quotes skyrocket. Look for discounts aggressively and consider higher deductibles.
If you're in a state that restricts credit use, quote widely—some insurers still find other risk proxies. If you’re in a state that allows credit-based scores, improving your credit can be one of the most powerful levers to lower long-term premiums.
When to consider nonstandard carriers and SR-22s
If you’re declined by mainstream insurers or need an SR-22 filing (after DUI or license suspension), nonstandard carriers can provide coverage faster. Expect higher prices and more limited coverage options—focus on:
- Getting the minimum required to satisfy the court/DMV (but don’t underinsure).
- Planning to move back to mainstream carriers after 2–3 years of clean driving and improved credit.
SR-22 filing fees run about $25–$100 for the certificate, plus policy increases. Nonstandard premiums can be 50%–200% higher than mainstream policies for comparable coverages.
Final checklist — getting the best policy with bad credit
- Compare at least 6 quotes across mainstream and nonstandard carriers.
- Ask about telematics, defensive driving, bundling and pay-in-full discounts.
- Consider dropping optional coverages on older cars to lower costs, but keep adequate liability.
- Improve credit score steadily—small improvements yield meaningful savings.
- If you need an SR-22, get it from a reputable nonstandard carrier and plan to re-shop after 2–3 years.
For deeper reading on coverage choices and buying strategy, see:
- Best Insurance For Cars: Complete Guide to Choosing Between Full Coverage and Liability
- Best Insurance For Cars for High-Risk Drivers After an Accident or DUI
- Best Insurance For Cars by Provider: Comparing GEICO, State Farm, Progressive and USAA
External sources cited
- ValuePenguin — How much does credit score affect car insurance: https://www.valuepenguin.com/car-insurance/credit-score-affect-car-insurance
- NerdWallet — Average cost of car insurance / how credit affects rates: https://www.nerdwallet.com/article/insurance/average-cost-of-car-insurance
- Bankrate — How much car insurance costs by state: https://www.bankrate.com/insurance/car/how-much-car-insurance-cost/
Get quotes, compare coverages carefully, and use the tips above to lower your premium even with a challenged credit history.