Best Car Insurance for People With Bad Credit in 2024 (Top 10 Companies)
The best car insurance for people with bad credit is offered by Progressive, USAA, and State Farm, with rates from $70/month. Known for their exceptional customer service, these companies provide specialized options and financial solutions tailored to meet the distinct challenges faced by people with bad credit.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
UPDATED: Oct 18, 2024
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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.
UPDATED: Oct 18, 2024
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.
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17,759 reviewsThe top picks for the best car insurance for people with bad credit are Progressive, USAA, and State Farm, known for their competitive rates starting at $75/month.
Progressive shines as the best company, offering the lowest rates alongside exceptional customer service and digital tools tailored for those with bad credit
Our Top 10 Companies: Best Car Insurance for People With Bad Credit
| Company | Rank | Multi-Policy Discount | Safe Driver Discount | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 10% | 15% | Online Services | Progressive |
 | #2 | 25% | 20% | Military Savings | USAA |
 | #3 | 15% | 10% | Customer Service | State Farm |
 | #4 | 25% | 12% | Coverage Options | Allstate |
 | #5 | 20% | 18% | Discounts | Nationwide |
 | #6 | 15% | 20% | Technology | Liberty Mutual |
 | #7 | 10% | 15% | Local Agents | Farmers |
 | #8 | 20% | 14% | Bundling Options | American Family |
 | #9 | 10% | 17% | High-Risk Drivers | Travelers |
 | #10 | 15% | 13% | Online Quotes | Esurance |
These providers excel in creating personalized solutions that cater to the financial circumstances of individuals needing affordable coverage. Opting for any of these insurers ensures that people with bad credit can access comprehensive insurance options without compromising on quality or affordability.
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#1 – Progressive: Top Overall Pick
Pros
- Cutting-Edge Online Services: Progressive stands out for its avant-garde online services, delivering a seamless and user-friendly platform for managing policies, filing claims, and accessing information with unprecedented ease.
- Multi-Policy Discount: Offering a 10% discount for customers with multiple policies not only encourages bundling but also extends a cost-effective solution for individuals seeking comprehensive coverage under one umbrella.
- Safety Rewarded: Progressive promotes and incentivizes responsible driving habits by providing a 15% Safe Driver Discount, demonstrating a commitment to fostering safer roads.
Cons
- Potentially Higher Rates: Our Progressive insurance review & ratings indicate that the company’s advanced services could slightly elevate costs above those of its competitors.
- Limited Agent Interaction: Despite online convenience, customers who prefer face-to-face interactions may find the limited availability of local agents a drawback.
#2 – USAA: Best for Military Members
Pros
- Generous Military Savings: USAA goes above and beyond, offering a remarkable 25% discount for military members, providing substantial cost benefits and recognizing the sacrifices of those who have served or are currently serving.
- Benefits for Military: In addition to savings, USAA tailors its services to cater to the unique needs of military members, ensuring a comprehensive and supportive insurance experience.
- Top-Tier Customer Service: USAA is renowned for its outstanding customer service, consistently earning high marks in customer satisfaction surveys and providing members with a sense of security and trust.
Cons
- Membership Limitation: USAA membership is limited to military personnel, veterans, and their families, excluding the general public.
- Limited Local Availability: The scarcity of physical locations could be a disadvantage for individuals who favor face-to-face meetings, according to the USAA insurance review & ratings.
#3 – State Farm: Best for Customer Support
Pros
- Customer Service Excellence: State Farm is renowned for its exceptional customer service, providing a personalized and attentive experience for policyholders.
- Multi-Policy Discount: Our State Farm insurance review & ratings highlight the company’s promotion of policy bundling by offering a 15% discount to customers who hold multiple policies, suggesting a pathway to potential savings on costs.
- Decades of Trust: With a long-standing legacy, State Farm brings a sense of reliability and trust, making it a go-to choice for those valuing a company with a strong history..
Cons
- Potentially Higher Premiums: Some customers may find that the emphasis on personalized service comes with slightly higher premiums compared to other providers.
- Limited Digital Features: While State Farm has embraced digitalization, its online platform may not be as advanced as some competitors.
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#4 – Allstate: Best for Tailored Coverage
Pros
- Coverage Options: Allstate stands out for its diverse range of coverage options, allowing customers to customize policies to meet their unique needs.
- Multi-Policy Discount: Providing a 25% discount for customers with multiple policies, Allstate encourages bundling for potential cost savings.
- Innovative Features: Our Allstate insurance review & ratings highlight the company’s innovative offerings, such as DriveWise, a scheme that incentivizes safe driving practices through savings.
Cons
- Higher Premiums for Some: Allstate’s comprehensive coverage and innovative features may result in slightly higher premiums compared to more basic plans.
- Variable Customer Service: While some customers praise Allstate’s customer service, others report varying experiences.
#5 – Nationwide: Best for Discount-Heavy Coverage
Pros
- Discount Opportunities: Nationwide offers a 20% discount on multi-policy bundles and an 18% safe driver discount, providing ample opportunities for savings.
- Nationwide Availability: With a broad nationwide presence, Nationwide ensures coverage is accessible for customers across the country.
- Diverse coverage Options: Nationwide provides a variety of coverage options, allowing customers to tailor policies to their specific needs.
Cons
- Average Customer Service: Customers have shared that their interactions with Nationwide’s customer service are sometimes average or lack consistency, according to our Nationwide insurance review & ratings.
- Limited Technological Innovations: While Nationwide offers online services, it may not have the same level of technological innovation as some competitors.
#6 – Liberty Mutual: Best for Coverage Enhancement
Pros
- Technological Advancements: Our Liberty Mutual review & ratings highlight the company’s commitment to leveraging technology, offering cutting-edge tools and services to improve the overall insurance experience.
- Safe driver Discount: Offering a substantial 20% discount for safe drivers, Liberty Mutual incentivizes and rewards responsible driving habits.
- Multi-policy Discount: Liberty Mutual provides a 15% discount for customers with multiple policies, encouraging bundling.
Cons
- Potentially Higher Premiums: Liberty Mutual’s emphasis on technology and innovative features may come with slightly higher premiums.
- Mixed Customer Reviews: Some customers report varying experiences with Liberty Mutual’s customer service and claims processes.
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#7 – Farmers: Best for Localized Community-Focused Coverage
Pros
- Local Agents: Farmers emphasizes a local presence with agents, providing a personalized touch and localized expertise.
- Multi-Policy Discount: Offering a 10% discount for customers with multiple policies, Farmers encourages bundling for potential cost savings.
- Various Coverage Options: Our Farmers insurance review & ratings highlight a variety of coverage selections, enabling clients to customize their policies according to their unique requirements.
Cons
- Potentially Higher Premiums: Some customers may find that the personalized service comes with slightly higher premiums.
- Limited Online Features: Farmers’ online platform may not be as robust as those of some competitors.
#8 – American Family Insurance: Best for Extensive Coverage Packages
Pros
- Bundling Options: American Family Insurance offers a 20% discount for customers with multiple policies, promoting bundling for cost savings.
- Multi-Policy Discounts: American Family Insurance offers appealing comprehensive coverage choices, featuring a 14% discount for bundle packages, according to our American Family Insurance review & ratings.
- Innovative Coverage Choices: American Family Insurance introduces innovative coverage choices, allowing customers to tailor policies to their unique needs.
Cons
- Limited Availability: American Family Insurance may not be available in all states, limiting its accessibility.
- Mixed Customer Reviews: Customer experiences with American Family Insurance can vary, with some praising their service and others expressing dissatisfaction.
#9 – Travelers: Best for Higher Risk Drivers
Pros
- High-Risk Driver Coverage: Travelers specializes in providing coverage options for high-risk drivers, accommodating those who may face challenges with other providers.
- Multi-Policy Discount: Offering a 10% discount for customers with multiple policies, Travelers encourages bundling for potential cost savings.
- Safe Driver Discount: Travelers provides a 17% discount for safe drivers, promoting and rewarding responsible driving habits.
Cons
- Potentially Higher Premiums: Our Travelers insurance review & ratings emphasizes coverage for high-risk drivers, its premiums might surpass the typical rates.
- Limited Discount Opportunities: While offering discounts, Travelers may not have as many opportunities for savings as some competitors.
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#10 – Esurance: Best for Digital Quotes
Pros
- Convenient Online Quotes: Esurance excels in providing easy and convenient online quotes, streamlining the process for potential customers.
- Multi-Policy Discount: Offering a 15% discount for customers with multiple policies, Esurance encourages bundling for potential cost savings.
- Innovative Online Services: Esurance prioritizes online services, providing customers with innovative tools for managing policies and claims.
Cons
- Limited Personalized Service: The online-focused strategy of Esurance could lead to fewer chances for customized service. Read our Esurance insurance review & ratings for more insight.
- Average Coverage Options: While Esurance provides standard coverage options, it may not offer the same level of customization as some competitors.
Exploring Auto Insurance for Bad Credit Rates
Understanding car insurance rates is crucial for those dealing with bad credit. Let’s delve into the specifics of coverage rates, shedding light on the numbers that can significantly impact your monthly budget.
Car Insurance Options for People With Bad Credit
Your credit score significantly influences how bad credit auto insurance companies set your premiums. A good versus bad credit score is generally considered within the range of 600 to 650, with higher scores receiving better rates.
Adjusting rates based on credit scores is common in financial activities, including policies from bad credit car insurance and bad credit car insurance companies. Improving your credit score is the direct way to lower car insurance costs.
Jeff Root Licensed Life Insurance Agent
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Special Discounts for People With Bad Credit to Save Money
Using Deductibles to Manage Premiums for People With Bad Credit
Raising your deductible can lead to reduced premiums. Opting to cover a greater portion of any claim expenses yourself diminishes your risk profile in the eyes of insurers, allowing for potential savings to be returned to you.
However, it’s important to ensure that the deductibles you choose are within your immediate financial capacity. If they’re set too high, you might face difficulties in settling a claim promptly due to the challenge of affording the deductible amount.
This strategy is applicable when searching for the best car insurance for bad credit or the best car insurance with bad credit, including when comparing options like USAA vs Esurance. For additional insights, please explore our resource on “How am I able to get my deductible back from an at-fault driver?”
Dropping Unnecessary Coverage to Save Money for People With Bad Credit
By removing unnecessary coverage from your policy, you have the opportunity to decrease your insurance expenses. For instance, collision coverage might not be essential for drivers of older vehicles. To access further information, review the following articles:
- Best Car Insurance for Drivers With Bad Credit in Oregon
- Best Car Insurance for Drivers With Bad Credit in Virginia
- Best Car Insurance for Drivers With Bad Credit in North Carolina
Furthermore, vehicles of a certain age might not require extensive coverage. Eliminating optional coverages like comprehensive insurance can help adjust the expense of your car insurance to better suit your budget.
Laura Walker Former Licensed Agent
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Case Studies: Optimal Car Insurance for Those With Bad Credit
- Case Study #1 – Military Discounts: Alex, a military member with bad credit, found an affordable solution with USAA, which offers a 25% military discount, providing both reliability and cost-effectiveness. To find out more, check out our military car insurance discount offer.
- Case Study #2 – Tailored Coverage: Sarah chose Allstate for its wide range of coverage options, ensuring she got affordable rates and the peace of mind that comes with coverage tailored to her specific needs.
- Case Study #3 – Seamless Experience: Chris, seeking to navigate car insurance options with bad credit, chose Esurance for its digital-first approach, enjoying a straightforward process from quote to policy management.
- Case Study #4 – Personalized Assistance: Lisa, a single mother with bad credit, found tailored assistance with Farmers Insurance, where local agents provided the personalized support she needed.
- Case Study #5 – Quick and Easy Solutions: Mark, a busy small business owner, opted for Esurance’s efficient online quote system, which provided him with a fast and convenient way to secure insurance.
Frequently Asked Questions
How does bad credit affect my car insurance rates?
Your credit score is one of the factors that insurance companies use to determine your individual rates. People with bad credit scores are seen as riskier to insure, and as such, their premiums will generally be higher than those with good credit scores.
What is considered a bad credit score?
Most insurance companies consider a credit score between 600 and 650 to be the dividing line between good and bad credit.
Find affordable options for commercial insurance by entering your ZIP code below into our free comparison tool.
How can I get affordable car insurance with bad credit?
Research is key. You’ll want to shop around and compare quotes from different insurance companies to find the best rates. You can also save money by bundling your policies or taking advantage of loyalty discounts.
Will having multiple lines of insurance with the same company help me get cheaper car insurance rates?
Yes. Having multiple lines of insurance with the same company, such as car insurance and renter’s insurance, can earn you savings on your premiums.
Should I disclose my bad credit score to my insurance company?
Yes, you should. Providing accurate information is important in getting an accurate quote for your car insurance, and withholding information can result in your policy being canceled or your claims being denied.
Will my credit score always affect my car insurance rates?
No, it won’t. Although most insurance companies do use credit scores as a factor in determining rates, there are some states that have banned this practice. Additionally, some companies are starting to develop algorithms that do not factor in credit scores.
Can I get car insurance with bad credit?
Yes, you can get car insurance with bad credit, but your rates may be higher than those with good credit. It’s important to shop around and compare quotes from different providers.
What options are available for car insurance for a bad credit rating?
Several insurance companies specialize in offering policies for those with a bad credit rating, including Progressive, USAA, and State Farm. These companies may provide more flexible rates and coverage options.
Are there specific car insurance policies for those with bad credit?
Yes, some insurance providers offer policies tailored for car insurance for those with bad credit, focusing on affordable rates and accommodating payment plans.
How can I find cheap car insurance for people with bad credit?
To find cheap car insurance for people with bad credit, it’s crucial to compare quotes from multiple providers, look for discounts, and consider adjusting your coverage levels.
Is it possible to get cheap insurance for bad credit without compromising on coverage?
Yes, by researching and comparing insurance quotes and bad credit, you can find policies that offer both affordability and adequate coverage.
What should I know about full coverage car insurance for bad credit?
Full coverage of car insurance for bad credit may cost more, but it provides comprehensive protection. Compare different quotes and consider higher deductibles to lower premiums.
How to get car insurance with bad credit and ensure it’s affordable?
To get affordable car insurance with bad credit, focus on improving your credit score, seeking out discounts, and choosing a policy that matches your budget and needs. For further details, read the articles titled:
Which insurance companies for bad credit offer the best rates?
Insurance companies for bad credit like Progressive, USAA, and State Farm are known for providing competitive rates for individuals with poor credit histories.
How do insurance quotes and bad credit affect my policy options?
Insurance quotes for individuals with bad credit may be higher, but they vary among providers. It’s essential to compare quotes to find the best rate for your situation.
Ready to find the best fleet insurance? Enter your ZIP code in our comparison tool below to see affordable commercial insurance rates in your area.
Can poor credit car insurance still provide comprehensive coverage?
Yes, poor credit car insurance can still offer comprehensive coverage. You might need to compare various policies and negotiate with insurers to find suitable coverage at an affordable rate.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
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.
