Drivers with no credit history can lower their premiums three ways. Enrolling in telematics programs, shopping across multiple carriers and building credit to move into a lower rate tier are the most direct options.
Car Insurance With No Credit History
Updated: March 17, 2026
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Key Takeaways
Drivers with no credit history pay an average of $102 per month, compared to $58 per month for drivers with excellent credit, a difference of $44 per month or $528 per year.
Insurers in most states treat no credit history differently from poor credit and other credit tiers. California, Hawaii, Massachusetts, Michigan and Washington prohibit credit-based pricing entirely.
Comparing quotes across multiple insurers is the most direct way to lower your rate. Drivers with no credit history may also qualify for high-risk driver programs that don't weight credit as heavily.
How to Get Car Insurance With No Credit History
- 1Start with telematics or usage-based insurance
Telematics programs like Progressive Snapshot, State Farm Drive Safe & Save and GEICO DriveEasy base rates on actual driving behavior rather than credit history. A driver with a clean record and no credit can earn lower premiums through these programs within the first policy term. Usage-based insurance, which charges a per-mile rate, is another option worth pricing out if you drive infrequently.
- 2Get quotes from at least five carriers
The spread between the cheapest and most expensive insurer for a no-credit-history driver is $816 per year, as the rate table above shows. The pricing gap between carriers comes from how credit score affects car insurance rates, with each insurer weighing the absence of a credit file differently. Getting quotes from GEICO, Travelers, Nationwide, Progressive and at least one regional carrier gives you a realistic floor.
- 3Ask about credit-neutral discounts
Discounts for safe driving, low mileage, multi-policy bundling, paying in full and completing a defensive driving course are all credit-neutral. Ask each insurer to apply all eligible discounts before accepting a final quote. You can cut a real portion of the credit penalty this way while you build your file.
- 4Open a secured credit card
A secured credit card with a $200 to $500 limit, used for small purchases and paid in full monthly, produces a scoreable credit file. Reaching the fair tier drops your average monthly premium from $102 to $89, saving $156 per year. Reaching good drops it further to $62 per month, saving $480 per year.
How Does No Credit History Affect Car Insurance Rates?
Insurers treat no credit history as a risk signal and price it higher than most credit tiers. Auto insurers use a credit-based insurance score, built from your credit report, to predict how likely you are to file a claim. Without any credit history, insurers can't generate that score and assign a higher rate.
Drivers with no credit history pay $102 per month on average, versus $58 per month for drivers with excellent credit. That $44 monthly gap adds up to $528 per year. Reaching the fair credit tier drops the average to $89 per month, a savings of $13 per month. Reaching good credit drops it further to $62 per month, saving $40 per month compared to having no credit file at all.
Credit Score Tier | Monthly Premium | Annual Premium |
|---|---|---|
No Credit History | $102 | $1,225 |
Poor | $147 | $1,759 |
Below Fair | $112 | $1,340 |
Fair | $89 | $1,070 |
Good | $62 | $740 |
Excellent | $58 | $697 |
Drivers with no credit history pay less on average than drivers with poor or below fair credit. A blank file shows less negative signal than a file with missed payments or collections on record.
How Much Does Car Insurance Cost by Company With No Credit History?
Rates for drivers with no credit history vary by insurer. GEICO charges $68 per month for this profile, the lowest among major carriers in this analysis. Allstate charges $136 per month for the same profile, the highest in the dataset.
The spread across companies for no-credit-history drivers is $68 per month, from $68 at GEICO to $136 at Allstate. That's an $816 annual difference for the same driver profile.
Company | No Credit History | Poor | Below Fair | Fair | Good | Excellent |
|---|---|---|---|---|---|---|
$68 | $96 | $77 | $64 | $45 | $42 | |
$99 | $118 | $98 | $75 | $51 | $46 | |
$97 | $122 | $106 | $94 | $72 | $65 | |
$107 | $142 | $116 | $100 | $69 | $63 | |
$136 | $148 | $127 | $111 | $82 | $84 | |
$133 | $162 | $135 | $111 | $81 | $75 | |
$108 | $263 | $155 | $93 | $51 | $40 |
Which States Don't Allow Credit Checks for Car Insurance?
Five states prohibit insurers from using credit history to set auto insurance rates: California, Hawaii, Massachusetts, Michigan and Washington. Drivers in these states pay rates based on driving record, age, vehicle type and location, not credit score.
If you live in one of these five states, your lack of credit history won't add a dollar to your premium. You still need to compare quotes because rates vary by insurer, but credit is off the table as a pricing factor. Drivers in all other states are subject to credit-based pricing unless their insurer opts out voluntarily.
No Credit History vs. Bad Credit: What's the Difference for Insurance?
No credit history and bad credit produce different insurance outcomes, and the rate data confirms this. Drivers with no credit history pay $102 per month on average, while drivers with poor credit pay $147 per month. A blank file carries less negative signal than a file with missed payments or derogatory marks.
A driver with no credit history has no negative history to age off and can reach a better rate tier faster. A driver repairing bad credit may need several years to clear derogatory marks, depending on the severity of the negative history. Both groups can reduce their rate by enrolling in telematics programs that reward safe driving regardless of credit score.
How to Build Credit to Lower Your Car Insurance Rate
Moving from no credit history to the good tier cuts the average monthly premium by $40, saving $480 per year at renewal. The steps below help you build a scoreable file and move into a lower rate tier.
Pay all bills on or before the due dates. Payment history is the largest component of a credit score, and a single missed payment can delay your progress by months. Set up automatic payments for the minimum due on any accounts, then pay the full balance separately before the due date.
Keep your credit utilization below 30% of your available limit. If you open a secured card with a $300 limit, keep the reported balance under $90. Pay down the balance before your statement closes, since credit bureaus report balances as of the statement date. Avoid opening multiple new accounts at once, as several hard inquiries in a short window can reduce your score even as your payment history improves.
Car Insurance With No Credit History: Bottom Line
Drivers with no credit history pay an average of $102 per month. GEICO offers the lowest rate at $68 per month for this profile, while Allstate charges $136. Compare quotes from at least five carriers, apply for telematics discounts and start building credit. Reaching the good credit tier drops your average monthly premium to $62, a savings of $40 per month that grows with each renewal.
No Credit History Auto Insurance: FAQ
Can I get car insurance with no credit history?
Yes. All major insurers write policies for drivers with no credit history. You'll pay a higher rate, with the average at $102 per month for full coverage, but coverage is available. Telematics programs from Progressive, State Farm and GEICO offer pricing based on driving behavior rather than credit score, which can reduce your premium from the first renewal.
Which insurance companies are cheapest for drivers with no credit history?
GEICO charges $68 per month for drivers with no credit history, the lowest among major carriers in this analysis. Nationwide and Travelers follow at $97 and $99 per month. Allstate charges $136 per month for the same profile. Getting at least five quotes is the only reliable way to find your actual floor, since rates vary by state, vehicle and coverage level.
Do all states allow insurers to use credit history for pricing?
No. California, Hawaii, Massachusetts, Michigan and Washington prohibit auto insurers from using credit history as a pricing factor. Drivers in these five states pay rates based on driving record, location, age and vehicle. If you live in one of these states, your lack of credit history has no impact on your auto insurance premium.
How can I lower my car insurance rate without a credit history?
Compare quotes from multiple carriers and apply for credit-neutral discounts such as safe driver, low mileage and pay-in-full. Enrolling in a telematics program is also worth doing if you have a clean driving record. Building even a thin credit file moves you into a lower rate tier and cuts your average monthly premium.
Does no credit history affect car insurance differently than bad credit?
Yes. Drivers with no credit history pay an average of $102 per month, while those with poor credit pay $147 per month. A blank file carries less negative signal than one with missed payments or collections. The path to a lower rate is faster from a blank file, since there are no derogatory marks to wait out.
MoneyGeek sourced rate data from Quadrant Information Services, which provides quote information that isolates each major factor influencing car insurance premiums across all residential ZIP codes in the U.S. Our base profile for this analysis:
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Single 40-year-old male
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2012 Toyota Camry LE
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Clean driving record
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No claims history
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Valid U.S. driver's license
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Full coverage: 100/300/100 liability with a $1,000 deductible for comprehensive and collision
Rates were segmented by credit score tier, including a dedicated no-credit-history profile for drivers with no scoreable credit file. Credit tiers represented are No Credit History, Poor, Below Fair, Fair, Good and Excellent. Company-level rates reflect averages across multiple ZIP codes to reduce geographic distortion. All figures are rounded to whole dollars. A few important limitations to note:
- Credit-based insurance scoring is prohibited in California, Hawaii, Massachusetts and Michigan. Rates in those states are not influenced by credit tier.
- Each driver's actual rate depends on their unique profile. The figures on this page are averages and your quotes may differ.
- MoneyGeek receives monthly data refreshes from Quadrant Information Services to keep rate information current.
Insurance regulations vary by state. Always verify coverage requirements with your state's insurance department.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.