Which insurance companies don't use credit scores?
The long and short of it: not many. Car insurance companies view your credit score as a very 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 their claims are more costly to an insurer.
The difference between the lowest level of credit and the highest is more than $1,500 in annual premium payments. Here are some alternatives worth considering if you're trying to find car insurance with poor credit.
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 this, you have a few options to find 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 phone usage
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. The only true telematics-only car insurance company is Root.
Although still relatively new to the game, Root Car Insurance uses only factors specifically related to driving to price its policies. For more information on other companies with telematics programs, see our related articles below.
How does my credit score impact me: 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.
| State | Very Poor (300-579) | Difference | Exceptional (800-850) |
| Alabama | $1,528.79 | 168% or $958 | $570.48 |
| Alaska | $1,034.61 | 91% or $494 | $540.88 |
| Arizona | $1,336.51 | 138% or $774 | $562.74 |
| Arkansas | $1,374.78 | 108% or $715 | $659.69 |
| California | $907.70 | 0% or $0 | $907.70 |
| Colorado | $1,660.15 | 127% or $928 | $731.88 |
| Connecticut | $1,384.88 | 101% or $695 | $689.81 |
| Delaware | $1,755.06 | 122% or $964 | $791.04 |
| District of Columbia | $1,645.84 | 140% or $959 | $686.83 |
| Florida | $1,989.38 | 120% or $1086 | $903.16 |
| Georgia | $1,381.14 | 98% or $684 | $697.61 |
| Hawaii | $540.59 | 0% or $0 | $540.59 |
| Idaho | $971.21 | 118% or $525 | $446.18 |
| Illinois | $1,160.44 | 114% or $619 | $541.39 |
| Indiana | $1,043.20 | 101% or $525 | $518.06 |
| Iowa | $827.44 | 85% or $381 | $446.58 |
| Kansas | $1,333.49 | 104% or $680 | $653.77 |
| Kentucky | $2,296.13 | 179% or $1473 | $823.17 |
| Louisiana | $2,150.15 | 113% or $1139 | $1,010.93 |
| Maine | $755.98 | 86% or $349 | $406.74 |
| Maryland | $1,177.89 | 94% or $571 | $606.60 |
| Massachusetts | $638.38 | 0% or $0 | $638.38 |
| Michigan | $3,420.33 | 198% or $2272 | $1,148.55 |
| Minnesota | $1,326.54 | 140% or $774 | $552.18 |
| Mississippi | $1,423.70 | 113% or $754 | $669.89 |
| Missouri | $1,640.86 | 173% or $1040 | $600.50 |
| Montana | $1,268.85 | 116% or $682 | $586.93 |
| Nebraska | $1,143.58 | 103% or $580 | $563.90 |
| Nevada | $2,353.06 | 199% or $1567 | $786.20 |
| New Hampshire | $983.16 | 105% or $504 | $478.86 |
| New Jersey | $1,568.09 | 117% or $847 | $721.18 |
| New Mexico | $1,198.89 | 101% or $601 | $597.56 |
| New York | $1,695.69 | 123% or $935 | $760.64 |
| North Carolina | $713.36 | 59% or $265 | $448.59 |
| North Dakota | $1,239.66 | 118% or $671 | $568.84 |
| Ohio | $967.03 | 118% or $523 | $443.75 |
| Oklahoma | $1,316.40 | 88% or $615 | $701.49 |
| Oregon | $1,336.03 | 117% or $721 | $614.86 |
| Pennsylvania | $1,305.37 | 114% or $696 | $609.33 |
| Rhode Island | $1,985.02 | 122% or $1090 | $894.62 |
| South Carolina | $1,420.65 | 133% or $811 | $609.48 |
| South Dakota | $1,241.46 | 110% or $652 | $589.94 |
| Tennessee | $1,499.47 | 146% or $889 | $610.58 |
| Texas | $1,549.86 | 87% or $720 | $829.76 |
| Utah | $1,256.99 | 149% or $752 | $505.38 |
| Vermont | $1,139.91 | 144% or $672 | $467.73 |
| Virginia | $818.51 | 94% or $396 | $422.35 |
| Washington | $1,149.85 | 125% or $638 | $511.52 |
| West Virginia | $1,254.92 | 100% or $628 | $626.72 |
| Wisconsin | $973.47 | 109% or $507 | $466.76 |
| Wyoming | $986.79 | 59% or $367 | $619.71 |
Related Content:
Telematics programs: company comparisons
Snapshot versus Root: Which is better for you?
Snapshot versus Drivewise: Which one is best for you?
Cheapest car insurance companies with bad credit
Recent Questions:
How do I get insurance if I'm a Canadian student moving to NY?
What does an insurability score of 813 mean?
Will my credit be run and/or impacted if I get insurance quotes from The Zebra?
Will my bad credit affect my fiancé's car insurance?
More Insurance Guides
What Car Insurance Companies Do Not Use Credit Scores?
Car Insurance vs. Health Insurance: A Guide What is No-Pay, No-Play Insurance? Is Car Insurance Tax-Deductible? What is a Named Driver Policy? What is Medical Payments Coverage? Does Auto Insurance Cover Preexisting Damage? Does Auto Insurance Follow the Car or the Driver? Car Insurance vs. Car Warranty: A Guide What is Property Protection Insurance? What is Permissive Use Car Insurance? What is Standard vs. Non-Standard Insurance? Actual Cash Value vs. Replacement Cost Value: A Guide What is an Excluded Driver? How to Read a Car Insurance Policy Agreed Value vs. Stated Value Insurance What is a Car Insurance Premium? Additional Interest vs. Additional Insured: A Guide What is Reinsurance? What is Subrogation? What is Loss of Use Coverage? What Does it Mean to Have Proof of Insurance? Is it possible to get a vehicle out of impound without insurance? Auto inspections and car insurance: how are they related? How to determine who is at fault in a collision: a guide What is an FR-44? What is Collateral Protection Insurance? What is Gap Insurance? Comprehensive vs. Collision Insurance Coverage Bodily Injury Liability Insurance Property Damage Liability Insurance Learn more about the National Association of Insurance Commissioners. Insurify Insurance Comparison Review Compare.com Insurance Comparison Review What Happens When an Insurance Company Closes? Independent Insurance Agents: Pros and Cons