IN PLAIN ENGLISH
By Ava Lynch December 14, 2020

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 California, Hawaii 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

 

Related Content:

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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