Compare auto insurance rates for drivers with poor credit

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Your credit history is one of the largest factors affecting your car insurance rate. (California, Hawaii and Massachusetts don’t allow insurers to use credit when determining car insurance rates.) Carriers use credit history to determine how likely you are to file a claim.

Average annual rate for drivers with poor credit, by company

While rates may double for some drivers with poor credit, know that every company considers credit differently. An insurance company may evaluate your credit differently depending on which state you live in.

Drivers with poor credit insured by Geico or Nationwide could pay less than 40% more a year, on average, compared with similar drivers with good credit. Meanwhile, State Farm’s average price for full coverage more than triples for drivers with poor credit compared with those with good credit.

Below you can compare average full coverage rates for 35-year-old drivers with poor credit by company.

Company

Drivers with good credit

Drivers with poor credit

Allstate

$2,665

$4,044

American Family

$1,791

$3,076

Farmers

$3,106

$6,478

Geico

$1,846

$2,566

Nationwide

$2,279

$3,147

Progressive

$2,112

$3,548

State Farm

$1,976

$7,289

Travelers

$1,681

$3,061

USAA*

$1,432

$2,650

*USAA is only available to military, veterans and their families.

Average annual rate for drivers with poor credit, by state

Certain states prohibit the use of credit in setting car insurance rates, and how insurers treat credit differs from state to state. For example, state regulators in one state may allow more wiggle room for credit-based pricing than others, which leads to variations by state as well as by company.

Our analysis revealed that:

  • In Connecticut, a driver with poor credit pays about 10% more than one with good credit, on average.

  • Having poor credit in either Arkansas or Maryland raises the average insurance rate more than 60% compared with drivers with good credit.

  • Average rates for those with poor credit in New Jersey or Wyoming were more than 100% higher than average rates for drivers with good credit.

Below you can compare average full coverage rates for 35-year-old drivers with poor credit by state.

State

Drivers with good credit

Drivers with poor credit

Alabama

$1,957

$3,532

Alaska

$1,776

$2,566

Arizona

$2,360

$3,606

Arkansas

$2,095

$3,464

California

$1,660*

Colorado

$2,670

$4,492

Connecticut

$2,916

$3,199

Delaware

$2,330

$4,285

Florida

$3,797

$5,987

Georgia

$2,521

$3,764

Hawaii

$1,889*

Idaho

$1,361

$2,258

Illinois

$1,927

$3,163

Indiana

$1,731

$3,056

Iowa

$1,676

$2,892

Kansas

$2,412

$4,057

Kentucky

$2,965

$5,318

Louisiana

$3,608

$5,657

Maine

$1,407

$2,167

Maryland

$2,409

$3,979

Massachusetts

$1,348*

Michigan

$2,496

$4,888

Minnesota

$1,872

$3,532

Mississippi

$2,118

$3,431

Missouri

$2,325

$3,770

Montana

$2,185

$3,944

Nebraska

$1,691

$2,702

Nevada

$2,603

$4,570

New Hampshire

$1,406

$2,242

New Jersey

$2,479

$5,222

New Mexico

$2,030

$3,207

New York

$2,209

$3,965

North Carolina

$1,597

$2,274

North Dakota

$2,329

$3,001

Ohio

$1,380

$2,432

Oklahoma

$2,261

$3,653

Oregon

$1,874

$2,968

Pennsylvania

$2,063

$3,614

Rhode Island

$3,341

$5,072

South Carolina

$2,291

$4,117

South Dakota

$1,838

$3,355

Tennessee

$1,958

$3,135

Texas

$2,966

$5,221

Utah

$1,795

$3,083

Vermont

$1,251

$2,191

Virginia

$1,787

$3,008

Washington

$1,723

$2,114

Washington, D.C.

$2,336

$3,927

West Virginia

$2,036

$3,265

Wisconsin

$1,817

$2,779

Wyoming

$1,069

$2,576

*The amount shown is the average full coverage rate for 35-year-old drivers. Credit is not used to price rates in this state.

California, Hawaii and Massachusetts don’t allow insurers to use credit when determining car insurance rates. In Washington, the legal code around this issue is being debated.

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