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
Edited byKatie 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 June 12, 2024

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Cheapest recent rates

Drivers using Insurify have found quotes as cheap as $35/mo for liability only and $41/mo for full coverage.

*Quotes generated for Insurify users within the last 10 days. Last updated on June 12, 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 June 12, 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 June 12, 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 June 12, 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 $259 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: Saturday, June 1 at 12:00 PM PDT
Insurance CompanyFull CoverageLiability Only
COUNTRY Financial5123
NJM6741
Hugo7361
USAA12156
Auto-Owners12859
GEICO13563
Mile Auto13772
Metromile14089
Erie14486
Root154105
Safeco15887
CSAA158106
Clearcover16097
Progressive16195
Allstate16575
State Farm17380
Mercury18597
American Family19385
National General19393
The Hartford212134
Elephant222120
Nationwide223101
Direct Auto234119
Travelers235107
Shelter240129
State Auto246122
Liberty Mutual263124
AssuranceAmerica263151
Dairyland277101
The General294137
Farmers299134
Infinity312224
21st Century314145
Anchor320116
GAINSCO334149
Foremost337165
Amica338204
Bristol West340154
Commonwealth Casualty376143
Chubb441205
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: Saturday, June 1 at 12:00 PM PDT
Insurance CompanyFull CoverageLiability Only
COUNTRY Financial3817
NJM5534
Hugo5647
Auto-Owners7936
Erie8852
USAA9846
Mile Auto10756
State Farm11553
Metromile11674
Root11780
GEICO11855
Safeco12066
Progressive12372
Allstate12657
CSAA12987
Clearcover13180
Mercury14576
National General14771
The Hartford160102
American Family16975
Elephant16992
Travelers17982
Nationwide18483
State Auto18692
Direct Auto19298
Shelter195105
AssuranceAmerica200115
Dairyland21177
Liberty Mutual216102
Infinity237170
Chubb238111
The General243113
Farmers244109
GAINSCO254114
Anchor25693
21st Century257118
Foremost257126
Amica258155
Bristol West276125
Commonwealth Casualty286109
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 $178 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 rates are estimated rates current as of: Saturday, June 1 at 12:00 PM PDT
Insurance CompanyFull CoverageLiability Only
COUNTRY Financial3516
NJM4729
Hugo5042
Auto-Owners6028
Erie6338
USAA8941
Mile Auto8947
Metromile9460
State Farm9544
CSAA10369
GEICO10448
Clearcover10865
Progressive11266
Safeco11664
Root11880
Allstate12054
Mercury12566
State Auto14070
The Hartford14592
National General14771
American Family14866
Elephant15484
Shelter16488
Nationwide16977
Liberty Mutual17080
Direct Auto17288
Travelers17278
Dairyland19069
The General20294
Amica203122
AssuranceAmerica204117
Farmers20994
Infinity212153
Chubb21399
GAINSCO229102
Foremost231113
21st Century244112
Bristol West251114
Anchor25793
Commonwealth Casualty25898
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.

Recent quotes for other Insurify users

Recent car insurance prices for GMC, Mercury, Buick, and more. Insurify features quotes from 70+ carriers including Dairyland, Direct Auto, and Safeco.

*Quotes generated for Insurify users within the last 10 days. Last updated on June 12, 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 June 12, 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 June 12, 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 June 12, 2024. 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]

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: Saturday, June 1 at 12:00 PM PDT
State NameGood CreditPoor Credit
North Carolina7390
New Hampshire76125
Hawaii87114
Wisconsin90122
Iowa95126
Alabama96128
Idaho96129
Indiana96131
Ohio98128
Wyoming100144
Vermont101127
South Dakota101148
West Virginia105140
Mississippi111184
North Dakota114139
Tennessee117163
Kansas119155
Maine121152
New Mexico123144
Oklahoma124161
Washington125147
Virginia126149
Illinois128146
Arizona129179
Oregon131155
Pennsylvania134164
Utah135183
Montana135166
Washington D.C.137202
Minnesota137191
Nebraska140180
Colorado140188
New York146189
United States147193
Missouri149213
Arkansas152216
Delaware152203
Rhode Island157208
New Jersey158208
Massachusetts160259
Texas171231
Georgia180243
California190258
South Carolina196257
Kentucky198261
Louisiana206259
Maryland233285
Nevada236327
Florida240315
Michigan248291
Connecticut265342
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."
  2. Insurance Information Institute. "Background on: Credit scoring."
  3. Experian. "What Is the Difference Between Credit-Based Insurance Scores and Credit Scores?."
  4. Fair Isaac Corporation (FICO). "What is a Credit Score?."
  5. Insurance Information Institute. "What determines the price of an auto insurance policy?."
  6. Experian. "Which States Restrict the Use of Credit Scores in Determining Insurance Rates?."
  7. Experian. "How to “Fix” a Bad Credit Score."
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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