Updated: June 4, 2025
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Insurance providers in California, Hawaii, Massachusetts and Michigan don’t conduct credit checks.
Telematics-based insurance is one way that drivers with bad credit can save on their auto insurance premiums.
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.
Major insurers like GEICO, State Farm, Nationwide and Progressive all check credit scores.
However, in states like California, Hawaii, Massachusetts and Michigan, laws ban credit checks for auto insurance. In places like Maryland, credit can affect rates but not eligibility. Washington has also temporarily banned credit scoring for premiums.
While few insurers skip credit checks entirely, it’s still possible to find affordable car insurance with poor credit.
Don't have the best credit score? You can still find affordable car insurance. Look for insurers that offer discounts for anti-theft devices, defensive driving courses or bundling multiple policies together.
Insurance companies started using credit-based insurance scores in the early 1990s to assess risk and set premiums. The reasoning? Data shows a correlation between credit scores and claim frequency.
A 2007 Federal Trade Commission report found that drivers with poor credit filed more claims than those with excellent credit. This made insurers view lower credit scores as a higher risk factor.
However, this practice has become increasingly controversial. Several states have restricted or banned credit scoring for insurance since the FTC report, recognizing that credit scores don't necessarily reflect driving ability.
Credit scores range from 300 to 850. While companies define "bad credit" differently, scores of 600 or below are generally considered poor. Lenders and insurance companies view people with bad credit as higher risk, which often means higher premiums.
Drivers with poor credit pay significantly more for car insurance because insurers consider them more likely to file claims. This is exactly why no credit check car insurance can save you money.
Your credit score's impact on your premiums varies by state and insurer, but the differences can be substantial:
| Nationwide | $771 | $708 | $643 | $556 | $478 |
| GEICO | $898 | $751 | $643 | $541 | $455 |
| Allstate | $1,175 | $1,002 | $860 | $735 | $625 |
| Travelers | $1,439 | $1,121 | $880 | $657 | $528 |
| Farmers | $1,590 | $1,204 | $963 | $832 | $677 |
| Progressive | $1,834 | $1,125 | $838 | $629 | $476 |
| State Farm | $2,102 | $1,483 | $1,057 | $743 | $540 |
Your location plays a major role in how much your credit score affects your car insurance rates. California, Hawaii, Massachusetts and Michigan completely ban insurers from using credit scores to calculate your car insurance premiums.
In states where credit scoring is allowed, the impact can be significant. Nationally, drivers pay an average of $1,424 per year for 100/300/100 full coverage with a $1,000 deductible, but your credit score could make your rate much higher or lower than this benchmark.
State | Poor | Fair | Excellent |
|---|---|---|---|
AK | $1,412 | $1,108 | $860 |
AL | $2,138 | $1,464 | $973 |
AR | $2,144 | $1,488 | $958 |
AZ | $2,495 | $1,545 | $988 |
CO | $2,515 | $1,781 | $1,211 |
CT | $2,511 | $1,782 | $1,221 |
DC | $2,107 | $1,428 | $1,011 |
DE | $2,959 | $1,989 | $1,269 |
FL | $4,194 | $2,648 | $1,644 |
GA | $2,955 | $2,090 | $1,464 |
IA | $1,237 | $885 | $620 |
ID | $1,245 | $886 | $608 |
IL | $2,077 | $1,430 | $985 |
IN | $1,220 | $856 | $576 |
KS | $1,602 | $1,085 | $725 |
KY | $3,023 | $1,862 | $1,187 |
LA | $6,874 | $4,417 | $2,689 |
MD | $3,826 | $2,893 | $1,868 |
ME | $1,046 | $712 | $511 |
MI | $12,574 | $5,920 | $3,361 |
MN | $2,778 | $1,674 | $1,143 |
MO | $2,270 | $1,493 | $936 |
MS | $1,867 | $1,310 | $906 |
MT | $2,070 | $1,399 | $941 |
NC | $1,024 | $875 | $721 |
ND | $1,360 | $923 | $604 |
NE | $1,442 | $1,002 | $661 |
NH | $1,274 | $904 | $641 |
NJ | $3,413 | $2,151 | $1,312 |
NM | $2,115 | $1,438 | $1,019 |
NV | $3,430 | $2,394 | $1,669 |
NY | $10,640 | $6,307 | $3,927 |
OH | $1,283 | $873 | $595 |
OK | $2,146 | $1,515 | $1,064 |
OR | $1,699 | $1,217 | $853 |
PA | $2,871 | $1,912 | $1,250 |
RI | $3,244 | $2,386 | $1,568 |
SC | $1,858 | $1,342 | $898 |
SD | $1,243 | $912 | $655 |
TN | $1,897 | $1,241 | $826 |
TX | $2,344 | $1,596 | $1,023 |
UT | $2,209 | $1,479 | $906 |
VA | $1,263 | $905 | $633 |
VT | $1,443 | $975 | $633 |
WA | $2,073 | $1,495 | $1,057 |
WI | $1,625 | $1,042 | $705 |
WV | $1,753 | $1,201 | $817 |
WY | $1,368 | $980 | $713 |
While people often use FICO credit score and credit score interchangeably, they're different. Your credit score shows how likely you are to repay debt. A FICO score is one specific type of credit score that lenders use to determine loan eligibility and interest rates.
Your credit score isn't the only factor insurers consider when setting your rates. You have several options to lower your premiums, even with less-than-perfect credit.
Even with poor credit, you can qualify for car insurance discounts that cut your premiums significantly. Look for discounts based on your driving record, vehicle safety features, payment method or bundling home and auto policies together.
Usage-based insurance tracks your driving habits and mileage to set your rates. Safe drivers who don't drive much can save substantially since you're rewarded for good driving behavior rather than penalized for credit issues. This gives you direct control over your premiums through your driving choices.
Non-standard auto insurance serves high-risk drivers, including people with poor credit, DUI convictions or multiple violations. Young drivers under 25 and seniors over 75 also fall into this category. While rates start higher, shopping among non-standard insurers can help you find competitive options.
Different insurers weigh credit scores differently, so shopping around is crucial with poor credit. Some companies focus more on driving record than credit history. Compare quotes from at least three insurers, but don't choose based on price alone. Look for companies with strong customer service ratings and efficient claims processing.
Most major auto insurance companies check your credit score when setting premiums, but your location matters significantly. If you live in California, Hawaii, Massachusetts or Michigan, you're in luck: these states completely ban credit-based pricing for auto insurance.
Everywhere else, your credit score can substantially impact your rates, but you still have options to find affordable coverage through discounts, usage-based programs and smart shopping strategies.
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.
Unless you live in California, Hawaii, Massachusetts or Michigan, all major insurance companies can check your credit score when setting premiums. These four states have laws that completely prohibit credit-based pricing for auto insurance.
It depends on your specific needs. Insurance companies offer alternatives if you have a poor credit score, like telematics-based insurance, which is based on your driving behavior. Another option is non-standard insurance for high-risk drivers or those with poor credit scores.
Your credit score typically affects your auto insurance rates. You are likely to pay higher premiums if you have a lower credit score; however, the impact of your credit score does also depend on what state you live in.
Study Overview
Car insurance rates vary significantly based on several key factors: your chosen insurer, age, gender, vehicle type, location, credit-based insurance score and driving record. MoneyGeek collected rate data across these primary rating factors that insurers use to calculate premiums and analyzed the results to determine average costs.
Data Collection and Analysis
MoneyGeek's data comes from Quadrant Information Services and state insurance departments, including 83,056 quotes from 46 companies across 473 ZIP codes.
Driver Profiles
We used this sample driver profile to determine average rates (unless otherwise noted):
When noted, we modified this profile by age, gender, location, vehicle, credit score and driving record to show averages for different driver types and coverage needs.
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:
Your $1,000 deductible means you pay 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.
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
