Car Insurance Rates by Credit Tier

Only a few states limit or prohibit insurers from considering your credit during the underwriting or rating process.

Lindsay VanSomeren
Lindsay VanSomeren
  • 8 years in insurance and personal finance writing

  • Former data scientist for U.S. Geological Survey

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.

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Katie Powers
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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.

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Mark Friedlander
Reviewed byMark Friedlander
Mark Friedlander
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.

Updated February 1, 2024 at 11:00 AM PST

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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 $254 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: Thursday, February 1 at 11:00 AM PST
Insurance CompanyFull CoverageLiability Only
COUNTRY Financial4823
Hugo6658
NJM8257
Mile Auto9754
Root10874
Metromile11982
USAA12358
Safeco12969
Auto-Owners13163
GEICO13463
Clearcover144100
Allstate14566
Mercury15093
Erie155102
Progressive16190
CSAA169104
State Farm17483
Nationwide19388
American Family19486
Elephant202116
The Hartford205144
National General20684
Travelers21398
Shelter221133
Liberty Mutual234114
Direct Auto238112
AssuranceAmerica238137
State Auto239120
Farmers272121
Dairyland278100
21st Century288130
GAINSCO298142
The General301140
Amica315213
Bristol West315139
Anchor320125
Infinity332183
Commonwealth Casualty356138
Chubb523243
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: Thursday, February 1 at 11:00 AM PST
Insurance CompanyFull CoverageLiability Only
COUNTRY Financial4823
Hugo5347
NJM5438
Auto-Owners8039
Erie8758
Mile Auto8950
Root9565
USAA9846
State Farm10852
GEICO11454
Metromile11479
Clearcover12184
Safeco13170
Allstate13662
Plymouth Rock13683
CSAA14489
Mercury14691
Progressive15386
The Hartford161113
American Family16975
Elephant174101
Nationwide18384
Shelter187113
Liberty Mutual19093
Travelers19690
National General20182
Direct Auto20496
State Auto206103
AssuranceAmerica214123
Farmers236106
Chubb245114
Dairyland24788
The General254118
GAINSCO260124
21st Century268121
Amica278188
Anchor280109
Bristol West288127
Foremost292144
Commonwealth Casualty321124
Infinity324179
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 $171 per month for full coverage and $85 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: Thursday, February 1 at 11:00 AM PST
Insurance CompanyFull CoverageLiability Only
COUNTRY Financial4120
NJM4229
Hugo5447
Erie5838
Auto-Owners6129
Mile Auto7642
Root8256
State Farm8641
USAA8741
Metromile8861
GEICO9947
Plymouth Rock10564
Clearcover11278
Mercury11370
Safeco11561
CSAA11570
Allstate11653
Progressive12470
Elephant14785
American Family14866
Liberty Mutual15074
The Hartford156109
National General16567
Nationwide16776
State Auto16783
Travelers16977
AssuranceAmerica178103
Shelter180109
Amica186126
Direct Auto19491
Farmers20290
Dairyland20975
Chubb215100
GAINSCO223106
The General226105
21st Century255115
Anchor258101
Bristol West267118
Commonwealth Casualty267104
Infinity281155
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: Thursday, February 1 at 11:00 AM PST
State NameGood CreditPoor Credit
New Hampshire72120
North Carolina76105
Hawaii83110
Wisconsin84113
Ohio91135
Indiana92129
South Dakota94134
Idaho97133
Wyoming97133
Iowa99131
Alabama102130
Vermont103143
North Dakota106131
Kansas107154
Mississippi108155
Tennessee110153
West Virginia111165
Maine118144
Illinois121156
New Mexico122161
Utah124165
Virginia124147
Pennsylvania129160
Arizona130180
Oregon131151
California131185
Nebraska131184
Massachusetts132176
Arkansas132174
Oklahoma133193
Colorado134181
Montana134165
Minnesota136179
Rhode Island139171
Missouri142201
United States142190
Washington146188
New Jersey149204
Delaware150198
Washington D.C.163217
Texas165223
New York172216
Kentucky175246
Georgia180240
South Carolina202252
Maryland205251
Nevada220279
Louisiana221298
Connecticut241303
Florida242319
Michigan269363
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:

  • illustration card https://a.storyblok.com/f/162273/100x100/4da605a1ec/teen-driver.svg

    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.

  • illustration card https://a.storyblok.com/f/162273/100x100/c922a01b77/house.svg

    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.

  • illustration card https://a.storyblok.com/f/162273/x/c8ad9d5019/driving-accidents.svg

    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.

  • illustration card https://a.storyblok.com/f/162273/x/c822f20cb3/billing-related.svg

    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.

Sources

  1. National Association for Insurance Commissioners. "Credit-Based Insurance Scores." Accessed July 26, 2023
  2. Insurance Information Institute. "Background on: Credit scoring." Accessed July 26, 2023
  3. Experian. "What Is the Difference Between Credit-Based Insurance Scores and Credit Scores?." Accessed July 26, 2023
  4. Fair Isaac Corporation (FICO). "What is a Credit Score?." Accessed July 26, 2023
  5. Insurance Information Institute. "What determines the price of an auto insurance policy?." Accessed July 26, 2023
  6. Experian. "Which States Restrict the Use of Credit Scores in Determining Insurance Rates?." Accessed July 26, 2023
  7. Experian. "How to “Fix” a Bad Credit Score." Accessed July 26, 2023
Lindsay VanSomeren
Lindsay VanSomeren

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.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
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.

Featured in

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Mark Friedlander
Reviewed byMark FriedlanderDirector, Corporate Communications
Mark Friedlander
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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