Car Insurance for Drivers with Bad Credit (Below 600) — Best Rates & Tips

Drivers with credit scores below 600 face auto insurance premiums 40–100% higher than drivers with good credit, resulting in average annual costs of $2,500–$4,000. In most states, credit-based insurance scores are one of the biggest factors in determining your rate, and low credit can cost you more than a traffic violation.

The impact of bad credit on insurance varies significantly by state and carrier. Some states — California, Hawaii, Massachusetts, and Michigan — have banned or restricted the use of credit in setting insurance rates, making them better options for drivers with credit challenges. In states that allow credit scoring, the difference between the cheapest and most expensive carrier for low-credit drivers can be $1,000 or more per year.

The most effective strategy for drivers with bad credit is aggressive comparison shopping. Some carriers are much more forgiving of credit issues than others, and you won't know which ones until you compare quotes. Meanwhile, work on improving your credit score — even moving from "poor" to "fair" credit can meaningfully reduce your premiums at your next renewal.