If you own a car and have bad credit, you don’t need a soothsayer to tell you that you will find it difficult to get a car insurance policy. In a world where insuring one’s property is now very important, getting coverage for your car is paramount. As such, you may want to know if there are insurance companies that offer car insurance for drivers with bad credit.
You don’t need to worry again because we are about to list out the best car insurance companies for bad credit in 2024, and trust us, what we are about to list will be very accurate.
5 Best Car Insurance Companies for Drivers With Bad Credit in 2024
In most situations nowadays, drivers with bad credit always suffer from high car insurance rates. Some car insurance companies charge drivers higher rates due to their bad credit scores. That does not make it impossible to find a car insurance company that you can trust.
1. Nationwide
Nationwide offers the best car insurance for drivers with bad credit due to its relatively affordable premiums and low complaint rate.
It offers accident forgiveness, new car replacement, and vanishing deductible options as an add-on to your policy. It also offer good insurance costs when adding teen drivers to your policy and it is availble in 46 states in the United States.
If you consider yourself a very good driver, you can leverage its usage-based insurance program to lower your car insurance cost. But if you’re an Uber or Lyft driver, look elsewhere, as it doesn’t offer rideshare coverage.
2. USAA
USAA is a licensed insurance company that offers the best deals to members of the military family. This is an excellent insurance company for drivers with bad credit, and it is the best for military members and veterans.
While it has a lower complaint rate, its low rates for drivers with an accident, DUI, or ticket on their records make it very appealing. As long as you are military personnel or a veteran, USAA will offer you premium discounts even with bad credit.
Unlike Nationwide, it offers a rideshare insurance coverage option, but the fact that it is exclusively for veterans and military members makes it less appealing.
3. American Family Insurance
American Family Insurance, also known as AmFam is another top-notch insurance company that offers car insurance for drivers with bad credit. Just like Nationwide, it has a very low level of complaints against it.
One thing we love about this mutual insurance company is that it offers a coverage option that most insurance companies that offer car insurance for drivers with bad credit do not, which is nonowner car insurance coverage and Gap insurance.
It offers pay-per-mile insurance program and disappearing deductible—coverage that safe drivers can leverage. In addition, it offers rideshare insurance for Uber and Lyft drivers, as well as accident forgiveness. However, its availability casts a shadow on its numerous benefits, as it is only available in 19 states.
4. Geico
As the second-largest auto insurance company in the U.S., it is not surprising to see Geico on this list. Even though it came fourth on our list, Geico offers certain coverage options, which sets it apart from other insurance companies in this aspect.
If you have been flagged as a high-risk driver or had a DUI that consequently resulted in you needing an SR-22 or FR-44 certificate, Geico is your best option if you need affordable coverage. Besides, Geico is available in all states in the U.S., unlike Nationwide’s 46 and American Family’s 19.
Adding to the intrigue, it has the lowest average annual coverage cost ($2,426) for drivers with bad credit of all the insurance companies on this list. On the other hand, it doesn’t offer disappearing deductible, pay-per-mile program, and new car replacement coverage.
5. Westfield Insurance
Headquartered in Ohio, Westfield Insurance is the best when it comes to family discounts. Perhaps you have teen drivers in your home who also want to get car insurance. I want to categorically tell you that Westfield Insurance is your best bet. You can leverage its plethora of family discounts and save costs.
Furthermore, it offers Gap insurance and good insurance rates for senior drivers. The very low level of complaints against it is also a testament to why it should be your go-to.
And if you’re a driver with a DUI or DWI on your driving record, you shouldn’t hesitate to get a policy for yourself. However, it is only available in 10 states, mostly in the Midwest.
FAQs
Does bad credit affect your car insurance rates?
Of course, it does. Insurance companies use your credit score to determine the amount you’ll pay as premiums. So, a good credit score increases your chances of getting better rates, while a bad credit score will spike your insurance premiums.
Can I be denied car insurance due to bad credit?
Insurance companies typically do not issue policies to individuals with poor credit histories. If you’re lucky enough to get an insurance company that is willing to offer you a policy despite your bad credit, the premium you will pay will be very high.
Will my credit score be affected if I apply for car insurance?
Unlike credit card companies, insurance companies conduct a ”soft inquiry” whenever they want to use your credit score to determine whether to offer you coverage or not. And a soft pull doesn’t affect your credit score. So, applying for car insurance doesn’t hurt your credit.
