Bad Credit Auto Insurance California
Your Credit Score Doesn't Matter Here
California law prohibits using credit scores for auto insurance rates. Whether you have bad credit, no credit, or recent bankruptcy - it won't affect your premium. Get the same rates as anyone else.
Good News: Credit Doesn't Affect Insurance in California
If you're worried about your credit score affecting your car insurance rate, you can stop worrying - at least in California. Thanks to Proposition 103 (passed by voters in 1988), California is one of only three states in the nation where insurance companies are prohibited from using credit scores to set auto insurance rates.
This means whether you have perfect credit, terrible credit, or no credit at all, your auto insurance rate will be exactly the same. Your financial history simply isn't a factor.
🛡️ California Proposition 103 Protects You
Under California law, auto insurance rates must be based primarily on:
- ✓ Your driving safety record
- ✓ How many miles you drive annually
- ✓ Years of driving experience
Insurance companies cannot use credit scores, occupation, education level, or lack of prior insurance as rating factors.
Financial Situations We Accept
Bad Credit Score
Score under 580? Doesn't matter in California
No Credit History
Never had credit? No problem
Recent Bankruptcy
Chapter 7 or 13 won't affect your rate
Collections
Outstanding collections have no impact
Foreclosure
Past foreclosure won't raise your premium
Medical Debt
Medical collections don't affect insurance
What DOES Affect Your Rate?
While credit doesn't matter, these factors do impact your California auto insurance premium:
💡 Did You Know?
California, Massachusetts, and Hawaii are the only states that prohibit credit-based insurance scoring. If you've moved from another state, you may find California insurance more affordable than expected - especially if credit was hurting your rates elsewhere.
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Auto World Insurance Services (Yako Enterprises Inc.) is a licensed California insurance broker, License #6005606. Rates shown are estimates only and vary based on driving record, vehicle, location, coverage selections, and other factors. Quotes do not guarantee coverage or final pricing. This is general information only, not legal, financial, or professional advice. For legal questions regarding DUI, SR-22, or license reinstatement, consult a qualified attorney.