Which Insurance Companies Don’t Use Credit Scores?

No major auto insurance provider skips credit checks nationwide. 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 Auto operates in New Jersey, Pennsylvania and Michigan with a no-credit-check policy. The company explicitly states it doesn't use education, occupation or credit scores to determine rates.
• Dillo in Texas offers coverage without credit checks, primarily serving high-risk drivers who struggle to find affordable coverage elsewhere.
• Root has committed to eliminating credit scoring entirely by the end of 2025. The company currently weighs driving behavior more heavily than credit. Root still considers credit scores in some areas where required by state regulations.
• Lemonade (which acquired Metromile) offers pay-per-mile coverage in eight states and performs only "soft" credit checks that don't impact your credit score.

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

These four states ban insurance companies from checking your credit when setting car insurance rates:

• California
• Hawaii
• Massachusetts
• Michigan

Live in one of these states? You'll get the same rate whether your credit is excellent or poor.

A handful of other states put some limits on how insurers can use your credit:

• Maryland allows insurers to use credit scores when setting initial rates but prohibits companies from canceling policies or refusing renewals based on credit history.
• Oregon restricts insurers from canceling or refusing to renew policies based on credit but permits the use of credit in initial underwriting.
• Utah limits credit use to offering discounts rather than increasing rates, and only for the first 60 days of coverage.
• Washington attempted a comprehensive three-year credit ban in 2021, but courts overturned it for exceeding statutory authority.

Our analysis found drivers with poor credit pay 112% more than those with excellent credit across all states (and Washington, D.C.) that use credit-based insurance scoring. The state-by-state data below shows considerable regional variations, with New York drivers paying the most ($10,640) and North Carolina drivers paying the least ($1,024).

Your credit score makes a big difference in what you'll pay for car insurance. 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.

Notice how some companies penalize bad credit: Progressive and State Farm increase rates significantly for poor credit scores. Nationwide takes a gentler approach, keeping its rates more stable regardless of your credit situation.

If regular car insurance quotes are making your wallet hurt, don't panic. You can get covered in other ways that care more about how you drive than what your credit report says:

These programs track your driving habits and reward safe behavior with discounts instead of focusing on credit scores:

• Progressive Snapshot monitors driving behaviors and saves about $90 for signing up. The program provides additional discounts for safe driving but increases rates for risky behavior.
• GEICO DriveEasy uses a mobile app to track driving behaviors. Our customers report savings of 15%. GEICO has advertised up to 25%.
• Nationwide SmartRide provides an initial 15% discount for safe driving, plus up to 40% off over time. The program doesn't raise rates, even for unsafe driving.
• State Farm Drive Safe & Save provides discounts based on mileage, time of day and driving behaviors. The program saves up to 30% for safe drivers.

Insurance companies started using credit-based insurance scores in the early 1990s after data showed correlations between credit management and claim frequency. A Federal Trade Commission report found that drivers with poor credit filed more claims than those with excellent credit.

Insurers argue that credit scores help them:

• Assess risk more accurately
• Price policies fairly based on statistical data
• Maintain stable rates for all customers

This practice has become increasingly controversial. Consumer advocacy groups argue that credit scoring creates a poverty penalty where economic hardship leads to higher insurance costs, potentially pushing coverage beyond reach for those who need it most.

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.

Your credit score is just one factor in your premium calculation. Even with credit challenges, you can still find competitive rates.

No-credit-check car insurance can be enticing, especially for drivers with less-than-excellent credit scores. MoneyGeek answered some of the most common questions about it.

Study Overview

We analyzed how credit scores affect car insurance rates and identified companies that don't check credit. Our research examined rate differences across credit score ranges and state regulations prohibiting or restricting credit-based pricing.

Data Collection and Analysis

Our data comes from Quadrant Information Services and state insurance departments, including 83,056 quotes from 46 companies across 473 ZIP codes. We compared rates for drivers with poor, fair, good and excellent credit scores to quantify the credit score penalty.

Driver Profiles

We used this sample driver profile to determine average rates across credit score ranges:

• 40-year-old male
• Clean driving record
• Full coverage with 100/300/100 limits and $1,000 deductible
• 2012 Toyota Camry LE
• 12,000 miles driven annually

We modified this profile across five credit score categories (poor, below fair, fair, good and excellent) to show how credit affects rates with different insurers and in different states.

Coverage Levels and Deductibles Explained

Average rates on this page reflect full coverage with 100/300/100 limits and a $1,000 deductible (unless otherwise noted).

A 100/300/100 policy provides:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability per accident

A $1,000 deductible means paying the first $1,000 of covered damage before insurance kicks in. Higher deductibles typically mean lower monthly premiums.

When different coverage levels are noted, we modified our sample driver's policy to show average rates for 50/100/50 minimum coverage and 50/100/50 full coverage, plus rates for annual, six-month and monthly payment plans.

Learn more about MoneyGeek's methodology.