Car Insurance with No Credit History
Is it possible to get an auto insurance quote without a credit score?
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.
Why does credit score matter in car insurance pricing?
Not every car insurance company uses credit history as a rating factor, but many do. It is a common pricing factor because of its apparent accuracy in helping auto insurers predict risk. Your credit score won't be considered if you live in certain states (California, Hawaii, Maryland, or Massachusetts) because state law prohibits it. Other states have added restrictions and limitations to when and how credit may be used (such as Oregon, Utah and Nevada).[1] Because state legislatures have been debating this topic recently, we suggest checking with your state insurance department for specific regulations where you live.[2]
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.
Compare multiple companies to find the best rates.
Best cheap car insurance without credit history
It’s tricky to determine how car insurance companies may view an applicant's incomplete credit history. A potential insurance company typically pulls credit history 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.
Updating data...
| Company | Avg. Annual Premium |
|---|---|
| USAA | $1,580 |
| Nationwide | $1,683 |
| GEICO | $1,707 |
| Farmers | $2,080 |
| State Farm | $2,127 |
| Progressive | $2,354 |
| Allstate | $2,743 |
Source: The Zebra
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.
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Stay in touch and subscribe!
Get advice, insights and tips from our newsletter.
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.
| Age group | Average Annual Insurance Premium |
|---|---|
| 16-19 | $5,151 |
| 20-29 | $1,918 |
| 30-39 | $1,407 |
| 40-49 | $1,355 |
| 50-59 | $1,258 |
| 60-69 | $1,287 |
| 70-79 | $1,514 |
| 80-85 | $1,804 |
No-credit-check auto insurance companies
Most auto insurance companies use drivers' credit ratings to determine their prices. A company may exercise discretion in most (but not all) U.S. states in deciding whether to use credit as a rating factor.[1]Â
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 the right policy in only a few minutes.
Related Content
- Car Insurance for Drivers with Disabilities
- Car Insurance for Drivers with Good Credit
- Car insurance for Low-Mileage Drivers
- Car Insurance with No Insurance History
- Male vs. Female Car Insurance Rates
- Car Insurance for Expats
- How Does Bankruptcy Affect Car Insurance Rates?
- Car Insurance for Drivers with Bad Credit
- Car Insurance for Recent Graduates
- How Do Medical Conditions Affect Car Insurance Rates?
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.