Car Insurance Rates by Credit Tier

Your credit score can affect your ability to find cheap car insurance, similar to how it influences the process of taking out a loan. In most states, insurers use a proprietary credit-based insurance score when determining your eligibility for coverage and calculating what you’ll pay for an insurance policy.^[1]

Studies show that — in addition to demonstrating how well you manage your money — credit-based insurance scores can serve as an indicator to an insurer of how likely you are to file a claim.^[2] Drivers with bad credit scores typically pay higher rates than people with good or excellent credit.

How does credit score affect car insurance quotes?

Generally speaking, drivers with good credit pay less for car insurance than drivers with lower credit scores. In fact, drivers with excellent credit can expect to pay as much as $2,000 less per year on auto insurance premiums than drivers with poor credit.

Your credit history helps determine your credit-based insurance score, a statistical tool auto insurance companies use to predict the chances (and potential cost) of you filing a car insurance claim. In other words, your insurance score predicts potential insurance losses. Your insurance score, therefore, directly affects your insurance pricing.

Cheapest car insurance for drivers with poor credit

Because a poor credit history may indicate a greater likelihood of having an accident or filing a claim, insurers tend to charge higher premiums if you have bad credit and live in a state that allows them to do so.^[3]

On average, drivers with poor credit pay $120 per month for liability-only policies, and $210 per month for full coverage. The following table shows average quotes from some of the cheapest companies for drivers with poor credit.

The below national rates are estimated rates current as of: Monday, March 9 at 12:00 PM PDT. 

Insurance Company	Full Coverage	Liability Only
COUNTRY Financial	$97	$52
NJM	$113	$69
USAA	$119	$62
Auto-Owners	$144	$81
Mile Auto	$146	$85
Safeco	$169	$103
GEICO	$172	$104
State Farm	$174	$90
Allstate	$175	$91
American Family	$175	$94
Direct Auto	$176	$115
Root	$183	$109
Mercury	$191	$114
Erie	$204	$122
Elephant	$205	$132
National General	$205	$107
Anchor	$217	$138
The General	$217	$110
Nationwide	$222	$116
CSAA	$223	$160
Travelers	$227	$120
Commonwealth Casualty	$227	$98
Liberty Mutual	$238	$172
Clearcover	$240	$170
Bristol West	$246	$122
Farmers	$255	$132
GAINSCO	$260	$122
Plymouth Rock	$261	$173
AssuranceAmerica	$264	$147
Dairyland	$272	$110
Shelter	$280	$169
21st Century	$293	$161
The Hartford	$322	$195
State Auto	$335	$187
Chubb	$422	$230
Amica	$524	$318

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

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Cheapest car insurance for drivers with good credit

A good credit score is usually considered to be between 670 and 739. This range is near or slightly higher than the average credit score in the U.S., according to FICO.^[4] If this applies to you, you’ll typically pay less for car insurance than someone with poor credit but a bit more than if you had excellent credit.

The following table shows average monthly quotes from top insurers for drivers with good credit.

The below national rates are estimated rates current as of: Monday, March 9 at 12:00 PM PDT. 

Insurance Company	Full Coverage	Liability Only
COUNTRY Financial	$79	$42
Auto-Owners	$80	$45
NJM	$89	$55
USAA	$98	$51
State Farm	$105	$54
Erie	$115	$69
Mile Auto	$119	$69
Safeco	$134	$82
Direct Auto	$139	$91
GEICO	$141	$85
Allstate	$144	$75
Root	$148	$88
American Family	$149	$80
Mercury	$157	$93
Elephant	$162	$105
National General	$162	$85
Anchor	$172	$110
The General	$172	$87
Nationwide	$180	$95
Travelers	$180	$95
Commonwealth Casualty	$180	$78
CSAA	$187	$135
Clearcover	$194	$137
Bristol West	$201	$100
Liberty Mutual	$202	$146
GAINSCO	$206	$97
Farmers	$209	$108
Chubb	$209	$114
Plymouth Rock	$210	$139
AssuranceAmerica	$210	$116
Dairyland	$215	$87
Shelter	$218	$131
The Hartford	$234	$141
21st Century	$239	$131
State Auto	$263	$147
Amica	$426	$259

Disclaimer: Table data is based on real-time quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.

Cheapest car insurance for drivers with excellent credit

You’ll typically pay the lowest rates for car insurance by credit tier if you have excellent credit. However, several different factors affect your insurance premium, so your credit score only plays a partial role. If you have excellent credit but a very poor driving record, you may face higher rates.^[5]

The average cost of car insurance for drivers with excellent credit is $152 per month for full coverage and $87 for liability. The table below shows the average rates top insurers offer to drivers with excellent credit.

The below national rates are estimated rates current as of: Monday, March 9 at 12:00 PM PDT. 

Insurance Company	Full Coverage	Liability Only
Auto-Owners	$59	$33
COUNTRY Financial	$79	$42
NJM	$81	$50
Erie	$84	$50
State Farm	$85	$44
USAA	$88	$46
Mile Auto	$98	$57
GEICO	$108	$65
Allstate	$124	$65
Safeco	$126	$77
Direct Auto	$129	$84
American Family	$129	$69
Mercury	$133	$79
Root	$136	$81
National General	$149	$78
Elephant	$153	$98
Liberty Mutual	$155	$112
Anchor	$157	$100
The General	$157	$80
Nationwide	$162	$85
Travelers	$162	$86
Commonwealth Casualty	$164	$71
CSAA	$173	$124
Farmers	$177	$92
Plymouth Rock	$180	$120
Chubb	$182	$99
Bristol West	$183	$91
Clearcover	$184	$130
GAINSCO	$187	$88
AssuranceAmerica	$191	$106
Dairyland	$196	$80
Shelter	$201	$121
21st Century	$221	$122
The Hartford	$226	$137
State Auto	$229	$128
Amica	$366	$222

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

How credit score affects car insurance costs by state

Where you live — including your state, city, and ZIP code — can also affect rates due to the area’s risk factors and insurance laws. States that limit or restrict insurers’ use of credit scores include California, Hawaii, Massachusetts, Michigan, Oregon, and Utah.^[6]

Nationally, Washington, D.C. car insurance is more expensive for drivers with good credit and for drivers with poor credit. The table below shows what drivers in each state pay overall per month for coverage by credit tier.

The below national rates are estimated rates current as of: Monday, March 9 at 12:00 PM PDT. 

State Name	Good Credit	Poor Credit
New Hampshire	$62	$80
Wyoming	$71	$89
Iowa	$72	$85
Idaho	$72	$100
North Carolina	$75	$96
North Dakota	$81	$95
Wisconsin	$84	$94
Hawaii	$85	$106
Montana	$86	$114
Alaska	$88	$103
Ohio	$91	$116
Vermont	$92	$119
Nebraska	$92	$121
New Mexico	$93	$116
South Dakota	$93	$108
Indiana	$94	$116
Tennessee	$96	$121
Alabama	$97	$123
Mississippi	$97	$126
West Virginia	$100	$119
Kansas	$101	$130
Maine	$102	$117
Arkansas	$104	$123
Utah	$109	$144
Oregon	$111	$144
Illinois	$112	$144
Oklahoma	$113	$146
Washington	$115	$159
Minnesota	$116	$135
Massachusetts	$118	$164
Pennsylvania	$118	$135
Arizona	$122	$158
California	$123	$176
Missouri	$124	$161
United States	$131	$165
Louisiana	$133	$175
Virginia	$136	$176
Colorado	$136	$175
Kentucky	$145	$188
New York	$152	$182
Texas	$159	$204
Michigan	$161	$191
Rhode Island	$168	$224
Delaware	$177	$223
Florida	$183	$230
South Carolina	$185	$240
Connecticut	$185	$218
Nevada	$187	$231
Georgia	$194	$249
New Jersey	$211	$260
Maryland	$214	$274
Washington D.C.	$238	$314

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

How to find out what your credit score is

Though insurers typically use credit-based insurance scores, you don’t have access to this information on your own as a consumer. These insurance scores are mostly based on your existing credit reports with the three national consumer credit bureaus (Experian, Equifax, and TransUnion) and LexisNexis, a data and analytics company that records any insurance claims you’ve made in the past seven years.

If you want to, you can ensure that your credit and claims reports are accurate and dispute them if you find an error. You can check your credit reports — and determine your credit score — with the three consumer credit bureaus at AnnualCreditReport.com. And to view your LexisNexis insurance claim report, called a Comprehensive Loss Underwriting Exchange (CLUE) report, you can visit its consumer-facing website.

How to improve your credit score

In general, you can improve your credit-based insurance score by following all the same steps that you would take to improve your credit score. The following tips can help you improve your credit score over time:

• Pay off your credit card debt.

• Set up auto pay so you don’t miss any credit card payments.

• Don’t apply for any new credit cards or loans unless you really need to.

• Build your credit by becoming an authorized user on someone else’s account.^[7]

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Factors that affect car insurance rates

Your credit history isn’t the only factor that insurers use to set your car insurance rates. Some factors have an even greater effect on your rates than your credit profile.

Auto insurers commonly consider the following personal rating factors to determine risk:

• 

  Age

  Teenage drivers generally pay the highest rates because of a lack of experience driving, and senior drivers face increased rates due to new risk factors associated with aging.

• 

  Location

  States have different minimum insurance requirements and regulations for insurance companies, which can affect average rates. Premiums also vary by city and ZIP code based on risk factors like vehicle theft rates, population density, accident severity, repair costs, weather, and more.

• 

  Driving history

  Drivers with a history of speeding tickets, DUIs, at-fault accidents, or other major infractions present a greater risk, so insurers charge them more.

• 

  Chosen coverage and deductibles

  If you select higher deductibles for comprehensive and collision coverages, you’ll typically pay less for your premiums. And you’ll pay higher rates if you purchase more coverage.

Credit score and car insurance FAQs