“There are worse things than being mad.”
This appears not to be a Kerouac quote. It has not been found in any of Kerouac's published work.
Misattributed
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Jack Kerouac 266
American writer 1922–1969Related quotes

“There are worse things in life than being called a lady.”
A Visit With Irene Dunne (1977)

“The only thing worse than being blind is having sight and no vision.”

“The only thing worse than being hurt is everyone knowing that you're hurt.”
Source: Postcards from the Edge

“The only thing worse in politics than being wrong is being boring, as Dick Nixon would say.”
As quoted by Matt Labash, "Debriefing Mike Murphy" https://www.weeklystandard.com/matt-labash/debriefing-mike-murphy (18 March 2016) The Weekly Standard.
“There are worse things than being fat, and one of them is worrying about it all the time.”
But I Wouldn't Have Missed It for the World! The pleasures and perils of an unseasoned traveler (1973)