Which Insurance Companies Don’t Use Credit Scores?

Auto insurance companies check credit scores unless you live in CA, HI, MA or MI. Find insurers and usage-based options like CURE and Root for no credit checks.

Have bad credit? Find out if you're overpaying for car insurance.

Written by Mark Fitzpatrick

Updated: December 20, 2025

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Key Takeaways

Major companies that avoid traditional credit checks include specialty insurers like CURE and Dillo (in limited states), as well as usage-based providers like Lemonade (Metromile) and Root, which is phasing out credit scoring by 2025.

Insurance companies in California, Hawaii, Massachusetts and Michigan don’t conduct credit checks.

Usage-based insurance programs and discount strategies can help offset higher rates for drivers with poor credit. These alternatives focus on driving behavior rather than credit history when determining premiums.

Car Insurance Companies That Don't Use Credit Checks

While most major carriers use credit-based insurance scores (except in banned states), a few specialized insurers offer auto policies without running a credit check at all, instead relying on factors like your driving history and claims record. GEICO, State Farm, Nationwide, Progressive, Allstate and other leading insurers check credit scores when they're legally permitted.

A few smaller companies operate differently:

CURE: Operates in New Jersey, Pennsylvania and Michigan. CURE sets rates based only on driving record, excluding credit score, occupation and education level from pricing decisions.
Dillo: This Texas-based insurer serves high-risk drivers without credit checks, focusing instead on driving history and claims patterns.
Root: Plans to eliminate credit scoring by the end of 2025. Check availability in your state, as implementation varies by local regulations.
Lemonade (which acquired Metromile): Offers pay-per-mile coverage in eight states using only soft credit inquiries that don't affect your credit score.

While few insurers skip credit checks entirely, you can still find affordable car insurance with poor credit.

How Do Credit Scores Affect Insurance Rates?

Drivers with poor credit pay more for car insurance because insurers view them as more likely to file claims or not pay their premiums. The table below breaks down the actual costs by credit level. If you're between 30 and 59 with poor credit, expect to pay anywhere from $771 with Nationwide to $2,102 with State Farm for basic coverage.


Geico	$2,548	$2,064	$1,701	$1,179	$1,091
Travelers	$2,689	$2,283	$1,753	$1,164	$1,074
Nationwide	$2,754	$2,350	$2,063	$1,526	$1,442
Progressive	$3,411	$2,839	$2,427	$1,503	$1,421
Allstate	$3,733	$3,178	$2,798	$1,937	$2,111
State Farm	$7,085	$4,223	$2,576	$1,448	$1,137

Progressive and State Farm raise rates sharply for drivers with poor credit. Nationwide's rates remain more consistent across credit tiers.

Alternative Car Insurance Options for Drivers With Poor Credit

If you have high insurance premiums due to poor credit, you can consider usage-based insurance instead. These programs use telematics (devices or apps) to track your actual driving habits and reward safe behavior with discounts. For these providers, the data collected from your driving can often mitigate or outweigh the negative impact of a poor credit score.


Nationwide SmartRide	Tracks behavior (e.g., braking, mileage). Crucially, the program does not raise rates for unsafe driving.	Initial 15% discount, plus up to 40% off over time.
State Farm Drive Safe & Save	Tracks mileage, time of day, and driving behaviors via telematics.	Saves up to 30% for safe drivers.
GEICO DriveEasy	Uses a mobile app to track driving behaviors.	Customers report savings averaging 15%; GEICO has advertised up to 25%.
Progressive Snapshot	Tracks driving habits (hard braking, late-night driving, mileage).	Offers a sign-up bonus and potential additional discounts; risky behavior can increase rates.

Which States Don't Allow Credit Checks for Auto Insurance?

In four U.S. states, insurance companies are completely prohibited from using your credit history or credit-based insurance score to set your car insurance rates. If you live here, every quote you receive will be 'no credit check':

California

Hawaii

Massachusetts

Michigan

State insurance regulations vary and may change. Consult your state insurance department for current requirements.

STATES WITH HYBRID CREDIT RULES

Several other states have laws that limit how an insurer can use credit, even if it's not a full ban. These states prevent insurers from canceling or refusing to renew a policy solely based on a low score, though they may still use it during initial underwriting.

Maryland: Insurers can check credit when setting initial rates but can't cancel policies or deny renewals based on credit history.
Oregon: Credit scores affect initial pricing. Insurers can't use credit as the sole reason to cancel coverage or refuse renewals.
Utah: Credit only applies to discounts, not rate increases, and only during the first 60 days of coverage.
Washington: A court struck down the state's attempted three-year credit ban in 2021 for exceeding statutory authority.

Average Cost of Car Insurance Cost by Credit Score Per State

MoneyGeek's analysis found drivers with poor credit pay 153% more for car insurance than drivers with excellent credit. Rates vary by state: Wyoming drivers with poor credit pay $4,566 annually, while New York drivers with excellent credit pay just $787. Credit tier matters within states; good-credit drivers pay $950 in Maine versus $2,974 in Louisiana.

Data filtered by:


Alabama	$3,177	$2,661	$2,277	$1,341	$1,637
Alaska	$4,091	$2,999	$2,340	$1,290	$1,409
Arizona	$3,756	$2,608	$1,972	$1,622	$1,251
Arkansas	$3,540	$2,977	$2,473	$1,541	$1,717
Colorado	$3,863	$2,948	$2,283	$1,877	$1,422
Connecticut	$3,404	$2,566	$2,003	$1,706	$1,239
Delaware	$3,729	$2,842	$2,283	$2,008	$1,506
District of Columbia	$4,555	$3,409	$2,720	$2,002	$1,705
Florida	$2,752	$2,251	$1,928	$2,431	$1,347
Georgia	$3,316	$2,482	$2,016	$1,698	$1,360
Idaho	$3,919	$3,051	$2,411	$985	$1,590
Illinois	$3,575	$2,642	$2,099	$1,264	$1,359
Indiana	$2,884	$2,358	$1,931	$1,055	$1,298
Iowa	$4,045	$3,164	$2,452	$1,231	$1,578
Kansas	$3,706	$2,921	$2,308	$1,388	$1,512
Kentucky	$3,517	$2,739	$2,129	$1,652	$1,367
Louisiana	$3,423	$2,594	$2,035	$2,974	$1,398
Maine	$3,868	$2,936	$2,297	$950	$1,469
Maryland	$3,264	$2,498	$1,992	$1,844	$1,324
Minnesota	$3,624	$2,524	$1,891	$1,272	$1,159
Mississippi	$3,381	$2,881	$2,436	$1,544	$1,782
Missouri	$3,103	$2,465	$1,957	$1,586	$1,294
Montana	$4,396	$3,456	$2,810	$1,490	$1,863
Nebraska	$3,696	$2,682	$2,057	$1,404	$1,365
Nevada	$3,366	$2,292	$1,710	$1,900	$1,074
New Hampshire	$3,267	$2,540	$2,027	$1,048	$1,313
New Jersey	$3,180	$2,477	$1,975	$1,984	$1,271
New Mexico	$3,701	$2,924	$2,361	$1,479	$1,595
New York	$1,989	$1,532	$1,221	$1,256	$787
North Carolina	$3,522	$2,789	$2,265	$1,338	$1,498
North Dakota	$4,289	$3,325	$2,528	$1,157	$1,640
Ohio	$3,007	$2,484	$2,048	$1,108	$1,363
Oklahoma	$3,574	$2,851	$2,311	$1,670	$1,529
Oregon	$3,299	$2,632	$2,178	$1,475	$1,494
Pennsylvania	$2,327	$1,774	$1,440	$1,295	$927
Rhode Island	$3,882	$2,952	$2,242	$1,609	$1,347
South Carolina	$3,467	$2,625	$1,983	$1,515	$1,237
South Dakota	$3,654	$2,822	$2,227	$1,333	$1,416
Tennessee	$3,619	$2,802	$2,193	$1,276	$1,399
Texas	$4,360	$3,102	$2,443	$1,865	$1,541
Utah	$3,352	$2,689	$2,194	$1,524	$1,503
Vermont	$3,947	$2,963	$2,340	$971	$1,518
Virginia	$3,361	$2,620	$2,068	$1,185	$1,307
Washington	$3,288	$2,564	$2,013	$1,309	$1,283
West Virginia	$4,370	$3,345	$2,658	$1,522	$1,699
Wisconsin	$2,991	$2,475	$2,035	$1,100	$1,369
Wyoming	$4,566	$3,338	$2,545	$1,030	$1,595

Rates based on MoneyGeek analysis of Quadrant Information Services and state data for sample driver profile. Your actual rates vary based on individual circumstances.

No-Credit-Check Car Insurance: Bottom Line

No major insurance company skips credit checks nationwide, but you have options if you have poor credit. If you live in California, Hawaii, Massachusetts or Michigan, you automatically get credit-free pricing. Everywhere else, focus on usage-based programs, discounts and shopping among multiple insurers to find affordable coverage.

Car Insurance Companies That Don't Use Credit Scores: FAQ

No-credit-check car insurance sounds appealing, especially if you have poor or fair credit. Here are answers to common questions about this coverage.

What car insurance should I use if I have a bad credit score?

If you have bad credit, try programs that track how well you drive instead of just looking at your credit score. Progressive Snapshot and GEICO DriveEasy reward you for careful driving.

You can also find better deals with smaller insurers that specialize in covering high-risk drivers. Don't settle for the first quote. Companies weigh credit differently, so shop around.

Can insurance companies deny coverage based on credit score?

Insurance companies can deny coverage based on credit score, but they rarely do it for credit alone. They're more likely to charge higher premiums for increased risk. Companies might deny coverage if you have extremely poor credit plus other high-risk factors.

Do insurance companies use hard or soft credit checks?

Insurance companies use soft credit pulls that don't affect your credit score. The soft credit check appears on your credit report but doesn't impact your credit rating.

Will my insurance rates improve if my credit score improves?

If your credit score improves, your insurance rates can get better too. Insurers check credit at renewal, so you might see lower rates when your policy renews after credit improvements. Better credit is also a perfect time to shop around for new coverage.

Auto Insurance With No Credit Check: Our Review Methodology

Our data comes from Quadrant Information Services and state insurance departments, analyzing 83,056 quotes from 46 insurers. We used a 40-year-old driver with a clean record, 2012 Toyota Camry and full coverage (100/300/100 limits, $1,000 deductible) across five credit score categories. Learn more about our methodology.

Insurance Companies That Don't Use Credit Scores: Related Articles

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like 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.

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sources

Federal Trade Commission. "Credit-Based Insurance Scores: Impacts on Consumers of Automobile Insurance." Accessed December 19, 2025.