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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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Recent Questions:

Could I get a lower rate on my car insurance by making my significant other the primary driver on the policy?

While there is no guarantee that buying a policy in your partner's name with you as an additional driver would be any lower than your current rate, it is possible. Since credit is a fairly important factor when pricing car insurance, making your partner the primary driver could lower the rate if their credit is significantly better than yours.
Jun 26, 2016 Clearwater, FL

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.
Jan 29, 2017 Loma Linda, CA

Does The Zebra use a hard or soft credit pull to compare insurance quotes?

Thank you for this question. The Zebra does not do a soft or hard pull of your credit.
Jun 3, 2019 Gary, IN

What do I put in a quote if I don't have a credit history

Not having a credit history doesn't mean you have bad credit but it will take time to build credit. I suggest speaking directly with an agent and see what they suggest as it could be company specific.
Jun 17, 2018 Austin, TX

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 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.

Ava Lynch
Ava LynchSenior Analyst

Ava worked in the insurance industry as an agent for four-plus years.

Ava currently provides insights and data analysis as one of The Zebra's property and casualty insurance experts. Her work has been featured in publications such as U.S. News & World Report, GasBuddy, Car and Driver, and Yahoo! Finance.