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Which insurance companies don't use credit scores?

All major car insurance companies — including GEICO, Progressive and State Farm — do a credit check during the quoting process. In fact, credit is one of the major rating factors used by underwriters when determining car insurance rates. At present, only three states disallow the use of credit history in setting ratesCaliforniaHawaii and Massachusetts, though other states are considering banning the practice. 

The telematics insurance company Root Insurance has recently vowed to phase out the use of credit when setting rates. Root plans to be the first car insurance company to do so, though the use of credit as a rating factor seems to be in place as of 2022.

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Key takeaways
  • All major car insurance companies check credit (where applicable)
  • California, Hawaii and Massachusetts outlaw the use of credit scores in pricing
  • Telematics insurance can be a good option for drivers with poor credit
  • Getting a car insurance quote does not affect your credit score

Why do car insurance companies check credit?

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.

Ultimately, the goal of underwriters is to minimize the risk to the insurer, which means that those seen as "high-risk" are often subject to higher premiums — or sometimes denied coverage entirely. Some companies place a higher emphasis on credit than others, meaning that quotes can vary widely from one insurer to another.

Some companies place a greater emphasis on credit than others, meaning that quotes can vary widely from one insurer to another.

How does credit affect car insurance premiums?

Those with good credit often pay far less for insurance than do those with a poor credit history. The difference in average auto insurance rates between the lowest level of credit and the highest is upward of $1,500 per year.


average car insurance rate by credit score chart

Auto insurance data methodology

The auto insurance rates published in this guide are based on the results of The Zebra's State of Insurance car insurance pricing analysis. This analysis of more than 83 million insurance rates spans every U.S. ZIP code, using a sample user profile: a 30-year-old single male driver with a Honda Accord, good credit and full coverage at these levels:

  • $50,000 per person/$100,000 per incident for bodily injury liability
  • $50,000 per incident for property damage liability
  • $500 deductibles for collision and comprehensive coverage

To generate pricing for particular rating factors, we adjusted the driving profile based on common pricing factors used by major car insurance companies. These factors include credit score, coverage level, driving record and others.

In some instances, average rates from Liberty Mutual were derived from internally sourced sales data.

No credit auto insurance guide

Those with no credit history still have options for finding affordable car insurance. Consult our guide to the best car insurance companies for drivers with limited credit histories to find out more.

What are the best 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 states' legislators feel that credit score evaluation may disadvantage low-income drivers. If you live in one of these states, you're in the clear. 

Outside of these states, few options exist for car insurance without a credit check, though you should still be able to find good coverage at a reasonable price by shopping around or considering a telematics program.

Telematics car insurance 

For drivers worried about credit checks, telematics and usage-based car insurance programs can be good options. These programs base your insurance rates primarily on your driving performance and frequency rather than demographics alone. Using an in-car device or a mobile app, a telematics device monitors your driving behaviors to create your premium.

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.

Telematics can monitor the following:

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


hand holding mobile phone

Zebra tip: shop around for quotes

Getting quotes from many different companies is a good way to find better prices. All companies weigh credit and other factors differently, meaning that you could find better rates simply by shopping around and comparing multiple quotes. Better still, getting quotes has no impact on your credit.

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

Depending on your state, a poor credit score can impact you differently while shopping for auto insurance. As mentioned above, California, Hawaii and Massachusetts currently ban insurers from using credit. Washington state temporarily banned the process in 2021, though the ban was overturned by the end of that year, forcing the state's insurance commissioner to look for a longer-term solution. 

While not outright banning the process, the states of Texas and Colorado have limits on how insurers can use these scores, or at least require the justification of their use from insurers according to Bloomberg

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

Find affordable rates today!

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Do insurance companies run a soft or hard credit check?

Insurance companies run a soft credit check when they run your credit. We can quote you with several carriers at The Zebra.
Jun 26, 2019 Colorado Springs, CO

Why does your fico score impact your insurance rate?

A credit score is a section of the overall "insurance score" that partially determines your insurance premium. The reason credit is used to determine rates in most states is due to the correlation between a driver's score and their likelihood to file a claim.
Feb 22, 2017 Palmdale, CA

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 seeing what they suggest as it could be company-specific.
Jun 17, 2018 Austin, TX

Are there car insurance companies that don't use credit?

Outside of the states of California, Hawaii, and Massachusetts, which do not allow credit to be used in insurance pricing, most companies will use credit to determine your rate. You might consider speaking with a local agent in your area about where you can find a company that doesn't use credit, but it may be difficult or even impossible to find a provider in your area.
Mar 24, 2017 Natchitoches, LA

Ross Martin photo
Ross MartinManager, Content Quality

As a licensed insurance agent, Ross researches and writes insurance content intended to help users make informed decisions.

Ross's background is in writing and education. He holds a master's degree from Royal Holloway, University of London.

Ross's work has been cited by The New York Times, Investopedia, The Simple DollarThe BalanceCar and Driver and Fox Business. He has been quoted by CNET, I Drive Safely and Kin Insurance

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.