How to Get the Best Car Insurance with Bad Credit

How to Get the Best Car Insurance with Bad Credit
Having bad credit shouldnt be a deterrent to receiving reliable car insurance. It can, however, make it more challenging for many when they are looking to score a great deal on car insurance premiums. But dont get discouraged – there are strategies that can be used to obtain affordable coverage regardless of your credit score situation. Heres how to get the best car insurance with bad credit.

Start with detailing your vehicle. Insurers often view vehicles that appear well-maintained as lower risk and reward drivers with lower insurance premiums. Regularly check your vehicles oil levels, replace worn brakes and other parts as needed, and perform regular preventative maintenance to help reduce the risk of costly breakdowns and repairs, certain to save you money both now and down the line.

Increase your deductible. Many insurers recognize a higher deductible ($500 to $1,000) as a sign of a lower risk, leading to lower rates. Keep in mind, though, your monthly premium could increase, so make sure youre prepared to cover the cost of a higher deductible in the event of an accident.

Shop around. Comparing fees and rates between different insurers is essential when searching for the best car insurance deal. Different insurance companies have their own set of criteria that determine a persons individual premium, so it pays to research the competition. A great online resource to utilize is that of Auto Insurance Compare, allowing customers to compare different insurers and their offerings in less time.

Reconsider cutting coverage. While increasing your deductible may be a prudent move, consider reconsidering dropping nonessential coverage from your insurance package. This could include towing costs, rental car reimbursement, and emergency roadside assistance among others, but could be a great way to trim down your insurance package without incurring too much risk.

Take a defensive driving course. Some insurance providers will give their customers a lower rate by coming to the conclusion they are better drivers. Taking a defensive driving course and getting a certificate of completion may allow an insurer to view you as a responsible driver and could be the extra edge necessary to get a better rate.

Pay in full. Insurance companies usually provide customers with a certain discount for paying insurance premiums in lump sums versus in installment payments, so opt for the former if youre able to.

Finally, most insurers will ask for proof of financial responsibility or an SR-22 Form. Car insurance companies are mandated to offer this particular type of insurance regardless of a persons credit score. This form essentially states that a person has the means to pay for any possible damages he or she may face due to an accident. Providing proof of financial responsibility may help lower your premiums even further.

Additional strategies to consider when trying to get the best car insurance with bad credit include opting for automated payments, inquiring about special discounts, being on the lookout for seasonal discounts, and joining a usage-based auto insurance, such as those offered by State Farm or Allstate, which is often helpful for budget-minded drivers looking to save money.

Additionally, consider bundling your car insurance with other policies such as homeowners insurance, renters insurance, umbrella insurance, or gap insurance. Many insurance carriers offer discounts when a person bundles two or more policies from them, which can turn into extra savings.

If you own your place of residence, consider capitalizing on the equity youve built up with it and opt for the pay by the mile plan. This plan requires customers to use a tracking device to monitor their miles driven, and the final insurance premium is then calculated based on the number of miles driven. Capitalizing on unused equity can help drivers who have bad credit and are looking to save some money on car insurance.

Its also important to remember there are certain bad credit auto loan lenders who are willing to take on the challenge of providing insurance to drivers with bad credit. Be sure to do a little investigating and compare these services against more traditional car insurance providers since you may find a great deal with one of these companies.

All in all, there is no such thing as having bad credit and not being able to get car insurance. By utilizing the above strategies and focusing on finding a great car insurance package that fits your needs while using your financial resources in smart ways, youll be able to find the best car insurance with bad credit.

Look to the Future

One way to help ensure you have adequate car insurance coverage with bad credit is by looking ahead to the future. By regularly monitoring and adjusting your car insurance policy as your credit score improves, you could see an overall decrease in premiums because of your newfound higher credit score. Be sure to stay current with the way in which credit is impacting your premiums and strategize ways to take advantage of better rates due to improvements in your credit score.


Often, being seen as a responsible owner of a car plays a large role in how much your car insurance premiums are. Owners who prove to be pro-active and knowledgeable about their vehicle are more likely to get better rates than irresponsible owners whose vehicles are not reliable. Ensuring informed ownership of your car will go a long way in helping get you the best car insurance with bad credit.


Make sure to consider all the factors relevant to your car insurance needs and find ways to compromise on the coverage that you are paying for. This means knowing exactly what coverage you need in order to help offset the cost of coverage and to ensure that you are not overpaying or underpaying. By compromising on your needs and wants, you’ll be able to maximize the best car insurance rates with bad credit.


Last but not least, make sure to take initiative when it comes to getting the best car insurance plan with bad credit. Research the market for any incentive programs, discounts, or other promotions that you may be eligible for. Don’t be afraid to ask questions, inquire about special offers, or even inquire about how your credit score is affecting your premiums. Outperforming by being knowledgeable and assertive can help you find the best car insurance plan with bad credit.

Building Credit

When it comes to maintaining an ideal credit score, it is important to remember that the process takes time. To get the best car insurance plan with bad credit, start to build your credit score by paying for bills on time and avoiding unnecessary debt. You could also consider signing up for a reputable credit card that allows you to utilize the benefits he or she is offering such as rewards programs and cash back. By making smart financial decisions and utilizing the benefits you have available to you, youll be on the path to achieving the best car insurance plan with bad credit.

Making Sacrifices

When budgeting for car insurance, don’t forget to set aside money to cover potential repairs and maintenance work. Drivers with bad credit may not have the luxury of paying for multiple policies such as gap, collision, or roadside assistance as these policies are usually only offered to drivers with good credit. To offset the lack of those policies, be sure to set aside extra money to cover costs that you may face should your car break down. Making small sacrifices like this one can help you get the best car insurance with bad credit.

Finding Alternatives

If you’re struggling to find the best car insurance plan with bad credit, consider alternative options such as utilizing a unique emergency assistance plan that provides coverage for times when car insurance does not. Car insurance policies usually do not cover things such as medical bills after an accident or stolen or lost items inside your car. Keep an eye out for any membership programs, roadside assistance agreements, or extended warranties that can give you the extra coverage you need for unexpected circumstances.

Staying Calm

Finally, while searching for the best car insurance with bad credit, it’s important to stay calm and not let panic or anger stop you from finding a good solution. Understand that certain things are out of your control and remain levelheaded as you walk through the insurance verification process. Be proactive and don’t wait until the last minute to find the right car insurance plan – the sooner you start the process, the better. By remaining calm and providing accurate information, you can help increase your chances of receiving the best car insurance with bad credit.