Top 7 Best Car Insurance Companies for Bad Credit in US

Do you have bad credit? If so, then you probably know how difficult it can be to get approved for loans, credit cards, or even car insurance. Although a car insurance company won’t necessarily deny you coverage if you have bad credit, they will certainly charge you a higher monthly premium if you do.

Insurance companies want to make sure that they can trust their policyholders to be responsible in more ways than one. Not only do they want you to be responsible as a driver, but they also want you to be responsible with your finances as well. This assures them that you can pay your monthly premium costs on-time and without any hassle.

Auto insurance companies calculate the risk factor of various types of drivers. Their statistical data reveals that more claims are filed by drivers with terrible credit scores than drivers with good credit scores. That is why drivers with bad credit scores pay more money for insurance than drivers with good credit scores.

The Top 7 Companies

The biggest challenge with having bad credit in the United States is finding a car insurance company which will give you a decent monthly premium rate. You will be happy to know that some companies like this do exist. Rather than spending time trying to find these companies, we have done the hard research for you.

Below are the 7 best car insurance companies for bad credit in the United States.

1) Farmers

If you have a Very Poor credit score of between 300 and 579, then Farmers insurance will charge you approximately $2,044 on average per year. If you have a Fair credit score of between 580 and 669, then your yearly cost is $1,774.

2) Nationwide

If you have a Very Poor credit score of between 300 and 579, then Nationwide insurance will charge you approximately $2,411 on average per year. If you have a Fair credit score of between 580 and 669, then your yearly cost is $1,983.

3) Progressive

If you have a Very Poor credit score of between 300 and 579, then Progressive insurance will charge you approximately $2,616 on average per year. If you have a Fair credit score of between 580 and 669, then your yearly cost is $2,157.

4) Geico

If you have a Very Poor credit score of between 300 and 579, then Geico insurance will charge you approximately $2,720 on average per year. If you have a Fair credit score of between 580 and 669, then your yearly cost is $2,212.

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5) State Farm

If you have a Very Poor credit score of between 300 and 579, then State Farm insurance will charge you approximately $2,907 on average per year. If you have a Fair credit score of between 580 and 669, then your yearly cost is $2,359.

6) Liberty Mutual

If you have a Very Poor credit score of between 300 and 579, then Liberty Mutual insurance will charge you approximately $2,911 on average per year. If you have a Fair credit score of between 580 and 669, then your yearly cost is $2,335.

7) Allstate

If you have a Very Poor credit score of between 300 and 579, then Allstate insurance will charge you approximately $2,913 on average per year. If you have a Fair credit score of between 580 and 669, then your yearly cost is $2,403.

Conclusion

As you can see from these results, Farmers offers the best car insurance rates for applicants with bad credit in the United States. You’ll also notice that there is a big difference in price between people who have a very poor credit score and people with a fair credit score. You could literally save about $500 per year if you have a fair credit score.

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