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 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.

 

average car insurance rate by credit score chart

 

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.

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:

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

 


This article was written by one of The Zebra’s resident insurance experts. Each article is thoroughly researched to ensure we provide readers the most accurate — and helpful! — information possible. That’s insurance in black and white.®

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Recent Questions:

How do I get insurance if I'm a Canadian student moving to NY?

You can still find car insurance without a social security number, but it may be more difficult without a US driver's license. Many insurers will not offer policies for non-licensed drivers.

What does an insurability score of 813 mean?

We have an article that breaks down the insurance score here. In short, a high insurability score means insurance companies should be very competitive in rates and you are an ideal — or "preferred" — customer.

Will my credit be run and/or impacted if I get insurance quotes from The Zebra?

Your credit is not run when you're in the shopping-around-stage for insurance quotes. It's only when you finalize your policy that your new insurer will run a soft credit check.

Will my bad credit affect my fiancé's car insurance?

If you set up the policy in his name before you are married, your score will not impact the rates. Once you are married, it may impact your rates, but not as much if you keep the policy in your finance's name once you are married.