Best Car Insurance For Bad Credit In 2022

Hey Sunshine,

Compare the best car insurance for bad credit in 2022 by understanding what to look for when shopping for auto insurance quotes. Get rates for cheap car insurance with bad credit by state, credit score required, and learn how to improve them.

Do you know that credit scores can put a striking effect on what you pay for your car insurance? Insurance agencies pose higher insurance rates for drivers with poor credit. On average, a bad credit score can make you pay $105 more than a driver having a good credit score.

Let’s get you to save this extra buck by a deal of insurance from the best and cheapest car insurance companies, comparing various insurance rates against different states and credit scores.

3 Best Car Insurance For Bad Credit

You might find it difficult to identify the best auto insurance that is customized according to your needs. Look for the following auto insurance companies centered around drivers with poor credit scores, while also providing good customer service:

  1. Geico
  2. Nationwide
  3. USAA

1. GEICO

GEICO is the second-largest insurer in the country. It offers the lowest rates to drivers with bad credit scores with an annual full-coverage premium of $1405. This is less than the average annual full-coverage premium which is $1655 for the year 2022.

Along with offering low premiums for high-risk drivers, GEICO offers a satisfying customer experience and various policy discounts. The unique car insurance discounts by GEICO to its policyholders are Membership and employee discounts, Emergency deployment, and Military discounts. This is one of the best car insurance for bad credit in the whole country that understands its customer’s requirements.

2. NATIONWIDE

Number 2 in the list of best car insurance for bad credit is Nationwide. Nationwide is a great option if you are looking for auto insurance with cheaper rates and a satisfactory customer experience. Nationwide is the 10th largest property and casualty insurer in the U.S. based on market share.

Its annual insurance is $1485 which is less than the annual average cost of car insurance. Nationwide offers a lot of discounts for its customers to save those extra dollars. Some of the discounts are SmartTide, SmartMiles, and Defensive Driving Discount.

Also, you may receive some additional perks while availing of auto insurance from Nationwide such as banking services, Umbrella insurance, Personal watercraft insurance, etc.

3. USAA

USAA is another excellent alternative to consider for drivers with bad credit. This auto insurance company not only provides you with affordable insurance but also outstanding financial strength services and a great customer experience.

USAA is the cheapest option for you with an annual premium of $1225, but only if you are from a military background. Despite providing a low annual premium, USAA offers its customers various discounts like Vehicle storage, Military Installation discounts, and SafePilot. However, these discounts may vary according to your location.

3 Cheap Car Insurance With Bad Credit In 2022

Recent data shows that a very poor credit score driver (300-579) pays an average of $209 per month for auto insurance, which is $2,500 more than a very good credit score driver.

Here are the 3 cheap car insurance with bad credit in 2022:

  1. Geico
  2. Nationwide
  3. USAA

1. GEICO

GEICO tops the list of cheapest car insurance companies offering a full coverage insurance policy starting at $157 per month, which is the cheapest rate for a driver with poor credit. It also provides auto insurance services for bad credit drivers at $947 for a half-year insurance coverage. It is the most affordable rate for a driver with a score of 579 or less.

2. Nationwide

Nationwide is a good option to get cheap car insurance for bad credit, charging $167 per month for a driver holding a poor credit score.

3. USSA

USAA offers its auto insurance services at a rate of $168 per month, which is just a little higher than Nationwide.

Also Check: Best Bank For Auto Refinance Loan

Compare Auto Insurance Rates For Bad Credit By State

Auto insurance rates are not only affected by the credit scores of a driver but also by location. Except for California, Hawaii, Massachusetts, or Michigan, your credit score can greatly affect the cost of your insurance so much so that you may end up paying twice the amount paid by a driver with a good credit score.

Auto Insurance Rates For Bad Credit By State
StateAverage annual full coverage premium with poor creditAverage annual full coverage premium with good credit
Alabama$3,108$1,623
Alaska$2,265$1,559
Arizona$2,804$1,547
Arkansas$3,461$1,914
California*$2,065$2,065
Colorado$3,321$2,016
Connecticut$2,967$1,845
Delaware$2,987$1,775
Florida$5,817$2,364
Georgia$3,143$1,982
Hawaii*$1,127$1,127
Idaho$1,748$1,045
Illinois$2,622$1,485
Indiana$2,621$1,254
Iowa$2,365$1,260
Kansas$3,165$1,698
Kentucky$4,128$2,128
Louisiana$4,630$2,724
Maine$1,425$965
Maryland$2,935$1,877
Massachusetts*$1,223$1,223
Michigan*$2,309$2,309
Minnesota$3,087$1,643
Mississippi$2,685$1,782
Missouri$2,829$1,661
Montana$2,894$1,737
Nebraska$2,862$1,531
Nevada$3,275$2,245
New Hampshire$2,174$1,275
New Jersey$3,307$1,757
New Mexico$2,534$1,419
New York$4,876$2,321
North Carolina$1,758$1,325
North Dakota$2,388$1,264
Ohio$2,075$1,034
Oklahoma$3,024$1,873
Oregon$2,288$1,346
Pennsylvania$2,553$1,476
Rhode Island$3,090$2,018
South Carolina$2,775$1,512
South Dakota$3,139$1,642
Tennessee$2,416$1,338
Texas$3,053$1,823
Utah$2,369$1,306
Vermont$1,873$1,207
Virginia$2,300$1,304
Washington, D.C.$3,072$1,855
Washington$1,816$1,176
West Virginia$2,635$1,499
Wisconsin$5,440$1,186
Wyoming$2,357$1,495

*As already mentioned, these states don’t consider credit score as one of the factors for deciding the rates of auto insurance, so you may not suffer a higher charge for the same insurance coverage in these states.

Compare Auto Insurance Rates By Credit Score

A driver with an average credit score pays $850 for an average six-month premium whereas a driver holding a fair credit score pays $931, which is more by $81. It reveals a major difference in the cost of the same auto insurance for different credit scores.

Compare Auto Insurance Rates By Credit Score

When the cost of an average 6-month premium for a driver with an excellent credit score was compared to the driver with the worst credit score, it came out to be $910 less than the driver with the worst credit score. This statistical data unfolds the power of credit score in determining your auto insurance cost.

However, a credit score is only one of the factors for the auto insurance companies to decide the quote of premiums. Companies also consider a driver with a bad credit score equivalent to filing more claims than a driver with a good or excellent credit score, hence they are charged less for the same insurance coverage. Therefore it is smart to calculate and decide whether the claims you are filing for the damage are worth having your rates increased.

Recommended: 580 Credit Score: Is It Good Or Bad To Get A Car Loan?

How To Apply For Car insurance With Bad Credit?

Before purchasing cheap car insurance with bad credit, the best method to insure the cheapest or most dependable option is to do extensive research. Let Mount Shine help you make the smart decision by choosing the best car insurance for bad credit in the United States. Our experts are there to guide you on how to apply for car insurance with bad credit in a few simple steps.

Apply Cheap Car Insurance With Bad Credit

Get free Insurance quotes, buy/renew, and save money on car insurance policy by contacting us. Our service is free, fast, and simple, so get started today!

FAQs

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