Which Insurance Companies Don’t Use Credit Score?

No major auto insurance provider skips credit checks nationwide. GEICO, State Farm, Nationwide, Progressive, Allstate and other leading insurers all check credit scores when legally permitted.

A few smaller companies operate differently:

• CURE Auto Insurance operates in New Jersey, Pennsylvania and Michigan with a no-credit-check policy. The company explicitly states it hasn't used education, occupation or credit scores to determine rates.
• Dillo Insurance in Texas offers coverage without credit checks, primarily serving high-risk drivers who struggle to find affordable coverage elsewhere.
• Root Insurance has committed to eliminate credit scoring entirely by 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, it’s still possible to find affordable car insurance with poor credit.

Four states completely prohibit insurance companies from using credit scores for auto insurance pricing:

• California
• Hawaii
• Massachusetts
• Michigan

If you live in these states, you automatically get no-credit-check car insurance regardless of which company you choose.

Several other states have partial restrictions on credit score use:

• 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 credit use 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, though courts overturned it for exceeding statutory authority.

Drivers with poor credit more for car insurance because insurers view them as more likely to file claims or not pay their premiums. 

Our analysis found drivers with poor credit pay 112% more than those with excellent credit. Nationwide offers the most affordable rates for poor credit drivers at $771 annually, while State Farm charges the highest at $2,102. The credit score penalty ranges from $293 (Nationwide) to $1,562 (State Farm) annually.

When traditional car insurance policies are too expensive, several alternative insurance models exist that focus less on credit scores:

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, plus up to 40% off over time for safe driving. The program doesn't raises 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.

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.

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. You can still find competitive rates even with credit challenges.

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.

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 that prohibit or restrict 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, 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

Your $1,000 deductible means you'll 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.