It’s a frustrating reality of how car insurance is calculated that people with poor credit histories are typically charged more than those with a good financial track record to their name.

Bear in mind that you’ll have a bad credit score if you have no history of using and paying off credit because this makes you an unknown quantity in the eyes of analysts, so it’s not just something that happens to people who are irresponsible with their money.

That said, there are ways to drive down the cost of car insurance even if you do have a credit score at the lower end of the spectrum, for whatever reason. Here are just a few of the best money-saving options to try out.

Compare packages online

Whatever your credit score, you should realize that there is a massive amount of competition in the car insurance market, and so providers are falling over themselves to undercut each other and give prospective customers the best deal.

The easiest way to receive competitive quotes is to use a site like, as comparison tools like this do all the hard work for you. It’s just a case of entering your details and letting the service do the rest.

What is more, you should remember to review your options every time your car insurance comes up for renewal, as sticking with the same provider is a surefire way to end up overpaying for cover.

Get car insurance that’s tied to telematics tracking

Another high-tech way to save on your auto insurance is to pick a package from a provider that offers telematics tracking to customers.

In this case, the price of your premium will depend on how sensibly you behave while driving your car, so even if you don’t have a credit score, your cover costs can fall and stay low if you do things like staying within the speed limit and avoiding erratic maneuvering.

Telematics is also useful when proving to your insurance firm that you have covered a limited number of miles in a set time period. 

The less you drive, the lower the risk you pose, and so prices can also come down simply by embracing a telematics package and using your car only for essential journeys.

Move to California

This is obviously a bit of a drastic measure, but one which it’s worth knowing about because California law prevents auto insurers from pricing their premiums according to the credit score of customers.

Indeed in the not too distant future, this could be a policy that is adopted in other states, as there is a sense that credit score-based car insurance calculations are more likely to penalize less affluent drivers, and not really have that much to do with their risk prospects.

Change cars

If you want cheaper insurance, the car you drive matters more than your credit score. Moving from a power-hungry model, or an older car with a lower safety rating, to a fuel-efficient, modern, family-oriented vehicle will lower your premium price.

This is because car choice not only reflects objective risks associated with vehicle tech, but also subjective aspects like the kind of personality a driver has based on the vehicle they choose to drive.

Build and improve your credit score

Your ultimate aim should be to build a good credit score, not just to get cheaper car insurance, but also to make lots of other things in life easier, like applying for loans.

Having a credit card, using it, then paying off the balance each month, is one of the best ways to go about this, so don’t be afraid to use credit so long as you do so responsibly.