Lindsay is a freelance personal finance writer currently pursuing her Series 65 license. She enjoys helping readers learn money management skills that improve their lives.
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
Mark FriedlanderDirector, Corporate Communications
Corporate communications director for Insurance Information Institute
20+ years in insurance and communications
As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.
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Drivers using Insurify have found quotes as cheap as $36/mo for liability only and $39/mo for full coverage.
*Quotes generated for Insurify users within the last 10 days. Last updated on April 22, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from April 22, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on April 22, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from April 22, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Your credit score can affect your ability to find affordable 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.
Quick Facts
Most states allow car insurance companies to consider drivers' credit history when setting insurance rates.
California, Hawaii, Massachusetts, Michigan, Oregon, and Utah prohibit or restrict the use of credit information in car insurance rating decisions.
Drivers with poor credit typically pay higher car insurance rates than those 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.
Keep in Mind
Your credit-based insurance score is separate from your FICO or Vantage score, which lenders use to determine your credit risk. Each insurer has its own proprietary process for using your credit information to calculate a credit-based insurance score.
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 $126 per month for liability-only policies, and $258 per month for full coverage. The following table shows average quotes from some of the cheapest companies for drivers with poor credit.
The below rates are estimated rates current as of: Wednesday, April 17 at 12:00 PM PDT.
Insurance Company
Full Coverage
Liability Only
COUNTRY Financial
46
21
Hugo
74
59
NJM
89
56
Mile Auto
111
59
Root
118
76
USAA
126
58
Safeco
133
72
Auto-Owners
135
63
Metromile
136
87
GEICO
139
63
Allstate
148
67
Progressive
156
88
CSAA
163
103
Mercury
165
90
Erie
169
101
State Farm
182
85
Nationwide
195
89
Direct Auto
199
98
American Family
200
88
National General
206
94
Elephant
214
119
Travelers
217
99
The Hartford
234
150
Shelter
239
132
AssuranceAmerica
252
144
Liberty Mutual
259
122
Dairyland
277
101
Farmers
280
125
21st Century
287
131
The General
296
138
Bristol West
316
141
GAINSCO
318
145
Anchor
324
125
Infinity
340
207
Amica
345
211
Commonwealth Casualty
370
142
Chubb
521
241
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus 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 rates are estimated rates current as of: Wednesday, April 17 at 12:00 PM PDT.
Insurance Company
Full Coverage
Liability Only
COUNTRY Financial
46
21
NJM
60
38
Hugo
60
48
Auto-Owners
80
37
Erie
96
57
Mile Auto
97
52
USAA
99
46
Root
105
67
State Farm
112
52
GEICO
117
53
Metromile
126
81
Safeco
134
73
Allstate
138
62
CSAA
139
88
Clearcover
140
85
Progressive
150
85
Mercury
167
91
American Family
171
76
The Hartford
176
113
National General
183
83
Elephant
185
103
Nationwide
185
84
Travelers
199
91
Liberty Mutual
200
94
Direct Auto
201
100
Shelter
205
113
AssuranceAmerica
228
130
Chubb
242
112
Farmers
242
108
Dairyland
247
90
The General
249
116
21st Century
265
121
Anchor
269
103
GAINSCO
275
125
Bristol West
282
126
Foremost
301
148
Amica
306
187
Commonwealth Casualty
334
128
Infinity
339
207
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
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 $177 per month for full coverage and $86 for liability. The table below shows the average rates top insurers offer to drivers with excellent credit.
The below rates are estimated rates current as of: Wednesday, April 17 at 12:00 PM PDT.
Insurance Company
Full Coverage
Liability Only
COUNTRY Financial
40
18
NJM
47
30
Hugo
60
47
Auto-Owners
62
29
Erie
64
39
Mile Auto
82
44
USAA
89
41
Root
90
58
State Farm
90
42
Metromile
97
62
GEICO
103
47
CSAA
110
70
Safeco
119
64
Allstate
120
54
Progressive
122
69
Clearcover
129
79
Mercury
131
71
American Family
151
67
Elephant
156
86
National General
156
71
Liberty Mutual
156
74
Nationwide
169
77
Travelers
172
79
The Hartford
172
110
Shelter
179
99
AssuranceAmerica
189
108
Direct Auto
194
96
Amica
207
127
Dairyland
208
76
Farmers
210
93
Chubb
216
100
The General
222
104
GAINSCO
239
109
21st Century
255
116
Bristol West
264
118
Anchor
267
103
Commonwealth Casualty
277
106
Infinity
295
180
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus 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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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]
The table below shows what drivers in each state pay overall per month for coverage by credit tier.
The below rates are estimated rates current as of: Wednesday, April 17 at 12:00 PM PDT.
State Name
Good Credit
Poor Credit
New Hampshire
75
124
North Carolina
75
92
Hawaii
85
111
Wisconsin
88
119
Ohio
95
124
Indiana
95
130
Idaho
97
131
Iowa
99
129
South Dakota
99
145
Alabama
100
130
Wyoming
101
142
North Dakota
103
130
Vermont
103
128
West Virginia
107
142
Kansas
110
161
Mississippi
110
179
Tennessee
114
159
Maine
120
150
New Mexico
124
164
Virginia
126
149
Oklahoma
127
162
Illinois
128
164
Arizona
129
180
Utah
130
176
Oregon
132
153
Washington
133
155
Minnesota
134
184
Pennsylvania
134
162
Nebraska
136
173
Montana
137
169
Colorado
137
185
Arkansas
141
196
Massachusetts
142
261
United States
145
191
Rhode Island
146
204
Missouri
146
209
Delaware
151
200
New York
154
196
New Jersey
156
211
Washington D.C.
160
229
Texas
170
230
California
173
238
Georgia
179
241
Kentucky
190
243
South Carolina
192
245
Louisiana
214
262
Maryland
219
268
Nevada
224
301
Florida
244
321
Connecticut
251
326
Michigan
253
299
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus 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 requirementsand 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
If you still have questions, the following information should help you understand how your credit score can affect car insurance rates.
Which states don’t use credit factors?
California, Hawaii, Massachusetts, and Michigan either ban or limit insurers from considering your credit history when determining your insurance premium. Oregon and Utah have limits on how insurers can use your credit history in specific circumstances. In Oregon, insurers can't use credit information to rate new insurance applicants. And in Utah, credit information can't be the sole reason an insurer denies a policy application.
What are the best options for no-credit-check car insurance?
About 95% of all car insurers use your credit history, so you don’t have many options for a true no-credit-check insurance company unless you live in a state that prohibits insurers from using your credit score. Root is one car insurance company taking steps to remove credit history as an insurance factor that influences policyholder rates.
Does it hurt your credit score to get car insurance quotes?
No. Insurance companies do a soft credit inquiry, which will show up on your credit report without affecting your credit score. A hard credit inquiry will affect your score when you apply for credit.
Why do car insurance companies use credit scores to determine premiums?
The credit-based insurance scores that insurers use help them predict how likely you are to file a claim and, thus, how much they should charge. That’s a bit different than how creditors use your credit score to predict how likely you are to pay late on a loan or credit card.
Lindsay VanSomeren is a freelance personal finance writer living in Suquamish, WA. Her work has appeared with FICO, Credit Karma, The Balance, and more. She enjoys helping people learn how to manage their money better so they can live the life they want.
Edited byKatie PowersAuto and Life Insurance Editor
Katie PowersAuto and Life Insurance Editor
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
Mark FriedlanderDirector, Corporate Communications
Corporate communications director for Insurance Information Institute
20+ years in insurance and communications
As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.