IN PLAIN ENGLISH

Which insurance companies don't use credit scores?

 

The long and short of it: not many. Car insurance companies view your credit score as an informative rating factor. Historical data from the Federal Trade Commission shows drivers with poor credit file more claims than do drivers with excellent credit, and that these drivers' claims are more costly to an insurer. 

The difference in average auto insurance rates between the lowest level of credit and the highest is more than $1,500 per year.

 

average car insurance rate by credit score chart

Learn more about the best car insurance companies for drivers with limited credit histories

 

What are your options for no-credit-check car insurance?

In some cases, your credit won't be used to determine your insurance premium. If you live in CaliforniaHawaii or Massachusetts, your credit score isn't a rating factor. This is because these state's legislation feels credit score evaluation disadvantages low-income drivers. If you live in one of these states, you're in the clear. 

Outside of these states, a few options exist for car insurance without a credit check. Consider telematics and usage-based car insurance. Usage-based insurance policies, backed by telematics, base your insurance rates on your driving performance, rather than demographics. Using an in-car device or a mobile app, a telematics device monitors your driving behaviors to create your premium.

Telematics can monitor the following:

  • Harsh braking
  • Rapid acceleration 
  • Mileage
  • Time of day driven 
  • Mobile device usage while driving

In theory, usage-based insurance is great for safe drivers who might be paying more for car insurance because of non-driving-related factors — for instance, poor or low credit. While telematics is relatively new in the insurance industry, most popular companies have their own programs in addition to their standard pricing model.

 

How does credit score impact insurance: a state-by-state analysis

Depending on your state, a poor credit score can impact you differently.

Find your state below and follow the link for more state-specific information.

StateVery Poor (300-579)DifferenceExceptional (800-850)
Alabama$1,528.79168% or $958$570.48
Alaska$1,034.6191% or $494$540.88
Arizona$1,336.51138% or $774$562.74
Arkansas$1,374.78108% or $715$659.69
California$907.700% or $0$907.70
Colorado$1,660.15127% or $928$731.88
Connecticut$1,384.88101% or $695$689.81
Delaware$1,755.06122% or $964$791.04
District of Columbia$1,645.84140% or $959$686.83
Florida$1,989.38120% or $1086$903.16
Georgia$1,381.1498% or $684$697.61
Hawaii$540.590% or $0$540.59
Idaho$971.21118% or $525$446.18
Illinois$1,160.44114% or $619$541.39
Indiana$1,043.20101% or $525$518.06
Iowa$827.4485% or $381$446.58
Kansas$1,333.49104% or $680$653.77
Kentucky$2,296.13179% or $1473$823.17
Louisiana$2,150.15113% or $1139$1,010.93
Maine$755.9886% or $349$406.74
Maryland$1,177.8994% or $571$606.60
Massachusetts$638.380% or $0$638.38
Michigan$3,420.33198% or $2272$1,148.55
Minnesota$1,326.54140% or $774$552.18
Mississippi$1,423.70113% or $754$669.89
Missouri$1,640.86173% or $1040$600.50
Montana$1,268.85116% or $682$586.93
Nebraska$1,143.58103% or $580$563.90
Nevada$2,353.06199% or $1567$786.20
New Hampshire$983.16105% or $504$478.86
New Jersey$1,568.09117% or $847$721.18
New Mexico$1,198.89101% or $601$597.56
New York$1,695.69123% or $935$760.64
North Carolina$713.3659% or $265$448.59
North Dakota$1,239.66118% or $671$568.84
Ohio$967.03118% or $523$443.75
Oklahoma$1,316.4088% or $615$701.49
Oregon$1,336.03117% or $721$614.86
Pennsylvania$1,305.37114% or $696$609.33
Rhode Island$1,985.02122% or $1090$894.62
South Carolina$1,420.65133% or $811$609.48
South Dakota$1,241.46110% or $652$589.94
Tennessee$1,499.47146% or $889$610.58
Texas$1,549.8687% or $720$829.76
Utah$1,256.99149% or $752$505.38
Vermont$1,139.91144% or $672$467.73
Virginia$818.5194% or $396$422.35
Washington$1,149.85125% or $638$511.52
West Virginia$1,254.92100% or $628$626.72
Wisconsin$973.47109% or $507$466.76
Wyoming$986.7959% or $367$619.71

 

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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.

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Recent Questions:

Do car insurance quotes affect credit?

Auto insurance is priced using an "insurance score" which does factor in a soft credit inquiry, not a hard credit pull, as well as your past driving history. This differs significantly from the way your credit is used when applying for a credit card or bank loan.

Can freezing your credit score affect your car insurance premium?

It's unlikely the freezing of your credit caused your premium to change - as freezing it doesn't affect your score and that's the only way your premium would adjust. Premiums, as a whole, have increased in 2018.

Insurance without a credit history

Considering your age, your best bet for finding a company without a credit score is to speak directly with an agent or customer service rep. Like your driving record, your credit score can tell an insurance company a lot about you - including what kind of car insurance client you will be to them.

How can I get an affordable car insurance rate in California with no credit?

California does not allow credit to be used for car insurance purposes so you won't have to worry about that impacting your rate. Finding an affordable rate is all about shopping with as many companies as possible to find your best insurance option.