Which Car Insurance Companies Do Not Use Credit Scores?

Excluding CA, HI, MA, and MI where it's banned, most insurers factor credit scores into rates. CURE and Dillo are the exceptions. Learn about these and other insurance options for drivers with bad or no credit.

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Ross Martin

Insurance Writer

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Ross joined The Zebra as a writer and researcher in 2019. He specializes in writing insurance content to help shoppers make informed decisions.

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Mark Friedlander

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Susan Meyer

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Which insurance companies don't use credit scores?

Most major car insurance companies like GEICOProgressive and State Farm factor in your credit score when giving you a quote. However, if you live in CaliforniaHawaiiMassachusetts, or Michigan, you're in luck—these states don't allow credit history to affect your auto insurance rates

Some smaller, regional insurers skip credit checks, though their coverage options (and available online information) can be limited. These include:

  • CURE Auto Insurance: Available in New Jersey, Pennsylvania, and Michigan.
  • Dillo Insurance: Available in Texas.

For those with a solid driving record but a less-than-stellar credit score (like 14% of our customers), Root Insurance is worth considering. Root focuses more on driving habits when generating quotes and has even commmited to stop running credit scores entirely by 2025.1

person checking credit report

Why some states ban insurers from using credit scores

Some states' legislators feel that credit score evaluations disproportionately disadvantage minority or low-income drivers regardless of their driving behavior. The goal is to prevent discrimination and ensure that insurance premiums are more reflective of actual driving risk.


Why do car insurance companies check credit?

Car insurance companies use credit as a rating factor because historical data from the Federal Trade Commission shows drivers with poor credit file more claims than drivers with excellent credit, and that these drivers' claims are more costly to an insurer.

Underwriters aim to reduce risk for insurers, which means those seen as "high-risk" might face higher premiums or even be denied coverage. Because the emphasis on credit varies by company, insurance quotes can widely differ.

Katie Gold, Head of The Zebra Insurance Agency
Did you know that your credit can affect your down payment?

"In states that allow it, your credit can affect your initial down payment and the payment plans offered. If you have good credit, you might get a lower down payment and more flexible payment options, as companies see you as reliable with paying bills."

-Katie Gold, Head of The Zebra Insurance Agency

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Zebra Tip: Shop around

We suggest getting quotes from many companies to snag better rates. Since each company values credit and other factors differently, you might discover more affordable options just by comparing several quotes. Plus, the good news is that getting these quotes won’t affect your credit score.


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 ANNUAL PREMIUMS BY CREDIT TIER

Updating data...

Credit Tier Avg. Annual Premium
Poor $3,147
Fair $2,071
Good $1,760
Very Good $1,627
Excellent $1,506

Source: The Zebra

The Zebra’s Dynamic Insurance Rating Tool data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.

credit
Have no credit history?

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?

Our experts here at The Zebra recommend two solid options for no-credit-check car insurance: shopping around for quotes or choosing a usage-based telematics program. Each insurer uses a different formula to evaluate credit and other factors, and while we don't know the exact details of these formulas, comparing quotes from multiple companies can help you find a cheaper rate. And, telematics programs, while usually still factoring in credit, typically place a stronger emphasis on driving behavior.

More on 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 programs are relatively new in the insurance industry, most popular companies have their own programs in addition to their standard pricing model.

Telematics might be right for you if:
  • You prefer insurers prioritize your driving habits over your credit score when setting your insurance rate

  • You are ok having your driving behavior tracked

  • You mostly drive during the day

  • You consider yourself a safe driver, sticking to speed limits, braking smoothly, and accelerating cautiously

You should consider other options if:
  • You tend to brake hard, accelerate quickly, or speed

  • You often drive at night

  • You use your mobile device while driving

  • The idea of your driving behavior being tracked makes you uncomfortable


State regulations on insurers' use of credit scores

Let's take a quick look at how different states handle the use of credit scores by insurance companies. The table below shows whether credit affects insurance premiums, whether you're accepted, and other specific rules. It's important to understand how where you live might influence your insurance choices and costs.

States Where Insurers are Limited or Prohibited to Use Credit
State Can't Use Credit to Determine Premiums Can Use Credit in Initial Offering Other Notable Restrictions
California2 Yes No Cannot use for underwriting or rating auto/home insurance
Hawaii3 Auto: Yes, Home: No N/A Credit affects homeowners insurance only
Maryland4 New policies only Yes Cannot use for denying, cancelling, or non-renewing
Massachusetts5 Yes No Applies to both auto and homeowners insurance
Michigan6 Yes No Can consider for payment options
Oregon7 No Yes Limited to certain credit information
Utah8 No, but can offer discounts Yes Can't use credit for cancellations or non-renewals after 60 days

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, Massachusetts and Michigan currently ban insurers from using credit. 

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.2

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

AVERAGE AUTO INSURANCE PREMIUMS FOR POOR AND EXCELLENT CREDIT
State Avg. Annual Premium (Poor Credit) Avg. Annual Premium (Excellent Credit) Difference
Alabama $3,102 $1,522 $1,580
Alaska $2,495 $1,691 $804
Arizona $3,232 $1,519 $1,713
Arkansas $3,977 $1,769 $2,208
California N/A* N/A* N/A*
Colorado $3,602 $1,815 $1,787
Connecticut $3,582 $1,575 $2,007
Delaware $3,610 $1,765 $1,845
Florida $4,840 $2,529 $2,311
Georgia $3,321 $1,714 $1,607
Hawaii N/A* N/A* N/A*
Idaho $2,015 $1,041 $974
Illinois $2,415 $1,293 $1,122
Indiana $2,113 $1,072 $1,041
Iowa $2,390 $1,143 $1,247
Kansas $3,061 $1,546 $1,515
Kentucky $4,693 $2,166 $2,527
Louisiana $5,270 $2,268 $3,002
Maine $2,122 $1,071 $1,051
Maryland $3,323 $1,711 $1,612
Massachusetts N/A* N/A* N/A*
Michigan N/A* N/A* N/A*
Minnesota $3,681 $1,424 $2,257
Mississippi $3,303 $1,570 $1,733
Missouri $3,102 $1,599 $1,503
Montana $2,884 $1,503 $1,381
Nebraska $3,483 $1,531 $1,952
Nevada $3,219 $1,984 $1,235
New Hampshire $2,390 $1,036 $1,354
New Jersey $3,806 $1,589 $2,217
New Mexico $2,524 $1,405 $1,119
New York $5,216 $1,737 $3,479
North Carolina $1,467 $1,077 $390
North Dakota $2,762 $1,287 $1,475
Ohio $2,081 $985 $1,096
Oklahoma $3,250 $1,695 $1,555
Oregon $2,525 $1,312 $1,213
Pennsylvania $2,955 $1,545 $1,410
Rhode Island $3,959 $1,937 $2,022
South Carolina $3,779 $1,663 $2,116
South Dakota $3,202 $1,332 $1,870
Tennessee $2,909 $1,277 $1,632
Texas $3,400 $1,636 $1,764
Utah $2,812 $1,322 $1,490
Vermont $2,117 $1,036 $1,081
Virginia $2,553 $1,250 $1,303
Washington $1,859 $1,808 $51
Washington, D.C. $3,749 $1,905 $1,844
West Virginia $3,052 $1,399 $1,653
Wisconsin $5,030 $1,145 $3,885
Wyoming $2,761 $1,299 $1,462

*California, Hawaii, Massachusetts, and Michigan all ban insurance companies from using credit score as a rating factor.


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FAQs

While major insurers including State Farm, GEICO, and Progressive use credit scores to determine rates, regional insurers CURE Auto Insurance (available in NJ, PA, MI) and Dillo Insurance (available in TX), do not. However, if you live in CA, HI, MA, or MI, laws prevent insurers from using credit to determine rates.

If you don't have a credit history, you might see higher car insurance rates, as insurers typically view this as a risk. But don't worry, in CA, HI, MA, or MI where credit scores aren't used to determine insurance rates, your lack of credit history won't impact your premiums.

If you have poor credit and need car insurance, we always suggest shopping around; each insurer weighs credit scores differently. Also, consider usage-based insurance, where your rates are usually more influenced by your driving habits than your credit history.


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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 editorial content is not subject to review or alteration by insurance companies or partners.
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