Are There Companies That Have No Credit Check Car Insurance?

All major auto insurance companies perform credit checks. Outside of certain states like California, Hawaii and Massachusetts, it’s challenging to find an insurer with no credit check car insurance. However, drivers with poor credit might be able to utilize other cost-saving options.

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Last Updated: 10/24/2022
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Drivers with bad credit scores typically pay higher car insurance premiums since insurers view them as more likely to file a claim. Thus, no credit check auto insurance tends to be appealing.

Although it’s difficult to find an insurance company that doesn’t check your credit score, there are other ways you can secure a more affordable quote. In this MoneyGeek guide, we dive into why credit scores are important, how credit influences your quotes and ways to find potential savings on car insurance.

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Key Takeaways


Telematics-based insurance is one way that drivers with bad credit can save on their auto insurance premiums.


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


The national rate for auto insurance averages $1,424 per year for comprehensive and collision coverage with a $1,000 deductible and 100/300/100 liability.

Are There Auto Insurance Companies That Don’t Check Credit Score?

MoneyGeek found that no major auto insurance provider skips credit checks. However, laws in states such as California, Hawaii, Massachusetts and Michigan don’t allow insurance companies to use credit scores to set auto insurance rates. Therefore, providers operating in these states don’t conduct credit checks.

Meanwhile, certain states limit the use of credit checks. In Maryland, for example, some auto insurance companies can use credit scores to determine a driver’s premiums. However, insurance providers can’t refuse to insure or cancel a policy based on an applicant’s credit history. Additionally, Washington temporarily banned auto insurance companies from using credit scoring to set premiums in 2021.

While it’s tough to find an auto insurance company with no credit checks, you can still get a reasonable rate for car insurance, even with bad credit.

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If you don’t have the best credit score, it’s still possible to secure affordable insurance premiums. Car insurance providers often offer discounts for installing anti-theft systems or bundling multiple insurance types.

Why Do Auto Insurance Companies Check Credit Scores?

Insurance companies use credit-based insurance scores as a tool to determine policyholders’ risk levels, a practice that started in the early 1990s. In turn, these scores are used to compute a customer’s auto insurance premiums.

A 2007 report by Federal Trade Commission (FTC) found that drivers with poor credit scores filed more claims compared to those with excellent credit, marking the former profile as high risk. Underwriters use credit-based insurance scores to minimize risk to the insurance provider. It’s worth noting that since the FTC released this report, several state governments have been working to restrict or ban this practice.

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Credit scores usually fall between 300–850. Although the definition of a “bad credit score” varies per company, a credit score of 600 or below is considered poor. Lenders or insurance providers tend to view individuals with bad credit as high-risk.

How Does Credit Score Affect Auto Insurance Premiums?

Where you live can determine how your credit score affects your rates. Insurance companies in California, Hawaii, Massachusetts and Michigan can’t use credit scores to calculate your car insurance premiums.

The table below reflects how your credit score can affect your premiums depending on the state in which you live. In a national comparison, auto insurance costs an average of $1,424 per year for 100/300/100 full coverage with a $1,000 deductible.

Annual Average Cost of Auto Insurance Per State By Credit Score

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  • State
  • AK
  • AL
  • AR
  • AZ
  • CO
  • CT
  • DC
  • DE
  • FL
  • GA
  • IA
  • ID
  • IL
  • IN
  • KS
  • KY
  • LA
  • MD
  • ME
  • MI
  • MN
  • MO
  • MS
  • MT
  • NC
  • ND
  • NE
  • NH
  • NJ
  • NM
  • NV
  • NY
  • OH
  • OK
  • OR
  • PA
  • RI
  • SC
  • SD
  • TN
  • TX
  • UT
  • VA
  • VT
  • WA
  • WI
  • WV
  • WY
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While the terms FICO credit score and credit score are used interchangeably, they aren’t necessarily the same. A credit score reflects risk or how likely you are to repay debt. Meanwhile, a FICO score is a type of credit score that lenders use to determine your loan eligibility and interest rate.

Ways to Save on Auto Insurance Premiums if You Have a Poor Credit Score

If you’re concerned about your credit score, don’t worry. It’s not the only factor that providers consider when calculating your auto insurance premiums. There are other ways that you can obtain a lower car insurance rate. These are listed below.

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    Even if you have a low credit score, you might be able to snag a car insurance discount and save a couple of dollars. You can usually find discounts based on your driver profile, the equipment installed in your vehicle, how you pay or bundling multiple insurance types.

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    Telematics-Based Insurance

    Telematics- or usage-based insurance tracks your mileage and driving behavior to compute premiums. With telematics-based insurance, drivers are incentivized to drive safer and drive less. Therefore, lower-income or low-risk drivers may find telematics-based insurance preferable since they are given more control over their rates.

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    Non-Standard Insurance

    Non-standard auto insurance caters to high-risk drivers, such as individuals with poor credit scores, multiple DUI convictions, driving violations or tickets. Drivers under 25 or over 75 are also considered risky. Weighing different non-standard insurance options can help you save long-term.

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    Shop Around

    If you have a below-average credit score, one of the easiest ways to find a reasonable auto insurance premium is to shop around. Taking your time and comparing different policies can lead you to a good deal. However, when you shop around, cost shouldn’t be the only factor you consider. You may look for other essential features like excellent customer service ratings, which can result in more efficient claims filing experiences.

Insurance Rates

Compare Auto Insurance Rates

Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.


Frequently Asked Questions

No credit check car insurance can be enticing, especially for individuals with less-than-excellent credit scores. MoneyGeek answered some of the most commonly asked questions about no credit check car insurance.

About the Author


Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.