Car Insurance with No Credit History

Is it possible to get an auto insurance quote without a credit score?

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A guide to non-credit-based car insurance


Car insurance rates are typically set using a driver's credit score to help determine their monthly premium. If you don’t have an established line of credit — if you're young or new to the U.S., for instance — the process of acquiring car insurance can get complicated. While the impact of not having established credit may vary, an incomplete history will probably look like "fair" credit in the estimation of an auto insurance company.

Let’s explore the best ways to find affordable car insurance without credit.

Credit and car insurance — table of contents:


Why does credit score matter in car insurance pricing?


Not every car insurance company uses credit history as a rating factor, but many do. If you live in California, Hawaii, Washington or Massachusetts, your credit score won't be taken into account because state law prohibits it. Outside of these states, credit is a common pricing factor because of its apparent accuracy in helping auto insurers predict risk.

Determining and avoiding risk is auto insurance companies' primary goal. Historical data show drivers with bad credit file more claims than do drivers with high credit, and that these claims tend to be more expensive. Bad or incomplete credit leads to designation as a high-risk — expensive — car insurance client.

Refer to our full guide on how to find cheap car insurance with bad credit.



Best cheap car insurance companies for a driver without credit history


It’s tricky to determine how car insurance companies may view an applicant's incomplete credit history. Credit history is typically pulled by a potential insurance company after the quoting process is complete. Credit score is then used to adjust the driver's rate up or down. Some companies may increase rates if a credit check turns up a lack of history, while other companies' rates may remain unaffected.

The below rates should provide a general idea of how much car insurance costs without a credit history. These rates come from The Zebra's methodology, with a "fair" credit score applied.


Car Insurance CompanyAverage Annual Premium with Fair Credit
Liberty Mutual$2,276
State Farm$2,003

USAA is the cheapest car insurance company for drivers with limited or no credit history. To get the best possible price, get quotes from as many companies as you can.

Once you have established a line of credit, be sure to shop around again. There’s a price difference of nearly 50% between drivers with excellent credit and poor credit. If you’re able to establish an excellent line of credit, you could save on your monthly auto insurance payments.


Additional insurance rating factors to consider

If your credit history is limited because you’re a young driver, you have another costly rating factor to contend with. Car insurance companies believe your driving history is a good indicator of how you will drive. Without a driving history to reference, car insurance companies view new drivers as high-risk drivers. The aggregated data below show young drivers paying significantly more than older drivers.


AgeAverage Annual Insurance Premium
Other common auto insurance rating factors include marital status, location and recent insurance claims. 


No-credit-check auto insurance companies


Most auto insurance companies use drivers' credit ratings to determine their prices. Hawaii, California, Washington and Massachusetts are the only states in which a prospective customer's credit score cannot be utilized. In other U.S. states, a car insurance company may use its discretion in deciding whether to use credit as a rating factor. 

If you’re looking for a car insurance policy with pricing based on your driving record rather than your credit report, consider usage-based insurance programs. These insurance policies rely on in-vehicle technology to track your driving behavior and determine your premium. Some of these companies may utilize a driver's credit report, but to a lesser extent than do traditional insurance companies.

The best way to save on car insurance without a credit score is to compare auto insurance rates from a variety of companies to find the best rates. Enter your ZIP code below to get started.

Find affordable insurance: compare car insurance quotes online.

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Ava Lynch
Ava Lynch LinkedIn

Ava worked in the insurance industry as an agent for four-plus years. Currently providing insights and analysis as one of The Zebra’s resident property insurance experts, Ava has been featured in publications such as U.S. News & World Report, GasBuddy, and Yahoo! Finance.