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.

Featured in

media logomedia logomedia logomedia logo
Katie Powers
Edited byKatie Powers
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

media logomedia logo
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 May 7, 2024

Save up to $717 by comparing quotes from the top 100+ insurance companies

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualTravelers
Advertiser Disclosure

At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.

We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

Cheapest recent rates

Drivers using Insurify have found quotes as cheap as $34/mo for liability only and $40/mo for full coverage.

*Quotes generated for Insurify users within the last 10 days. Last updated on May 7, 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 May 7, 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 May 7, 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 May 7, 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: Friday, May 3 at 12:00 PM PDT
Insurance CompanyFull CoverageLiability Only
COUNTRY Financial5324
NJM6842
Hugo7559
USAA12255
Auto-Owners13061
Mile Auto13471
GEICO13462
Metromile14492
Erie14788
Safeco15585
Root158105
Clearcover16098
Allstate16675
CSAA168106
State Farm17079
Progressive17097
Mercury18198
American Family19586
National General20193
The Hartford217138
Elephant219120
Nationwide224102
Travelers236108
Shelter239132
Direct Auto239118
State Auto250125
Liberty Mutual251118
AssuranceAmerica256146
Farmers272121
Dairyland278102
The General299138
Anchor313120
21st Century323146
GAINSCO325147
Foremost337166
Amica346210
Bristol West347156
Infinity361239
Commonwealth Casualty375143
Chubb444206
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.

Find Cheap Car Insurance

Liability rates start at $24/mo. for drivers with poor credit

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualTravelers

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: Friday, May 3 at 12:00 PM PDT
Insurance CompanyFull CoverageLiability Only
COUNTRY Financial4018
NJM5635
Hugo5745
Auto-Owners8037
Erie8953
USAA9845
Mile Auto10656
State Farm11352
GEICO11754
Safeco11764
Metromile11876
Root12080
Allstate12657
Progressive12973
Clearcover13181
CSAA13686
Mercury14277
National General15271
The Hartford164104
American Family17075
Travelers17982
Elephant18199
Nationwide18383
State Auto19195
AssuranceAmerica194111
Shelter194107
Direct Auto19697
Liberty Mutual20798
Dairyland21177
Chubb241112
Farmers242108
The General245113
GAINSCO247112
Anchor24895
Foremost256126
Amica262159
21st Century262119
Infinity274181
Bristol West280126
Commonwealth Casualty284108
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: Friday, May 3 at 12:00 PM PDT
Insurance CompanyFull CoverageLiability Only
COUNTRY Financial3617
NJM4730
Hugo5141
Auto-Owners6028
Erie6438
Mile Auto8847
USAA8940
State Farm9343
Metromile9661
GEICO10347
Clearcover10766
CSAA11069
Safeco11362
Progressive11867
Allstate11954
Root12080
Mercury12266
State Auto14572
The Hartford14894
National General14969
American Family14965
Elephant15183
Liberty Mutual16377
Shelter16490
Nationwide16876
Travelers17178
Direct Auto17386
Dairyland19070
AssuranceAmerica199113
The General20494
Amica206125
Farmers20892
Chubb21499
GAINSCO223101
Foremost231113
Infinity244161
21st Century247112
Anchor25096
Bristol West254114
Commonwealth Casualty25798
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.

Compare Car Insurance Quotes

Insurify partners with 100+ top insurers to provide free car insurance quotes

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualTravelers

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: Friday, May 3 at 12:00 PM PDT
State NameGood CreditPoor Credit
North Carolina7491
New Hampshire75124
Hawaii84111
Wisconsin89120
Ohio96125
Idaho96130
Indiana96114
Iowa98127
Wyoming98141
South Dakota99143
Alabama100130
Vermont103126
North Dakota105149
West Virginia106142
Mississippi110180
Kansas114166
Tennessee115160
Maine120151
New Mexico125165
Virginia125149
Oklahoma126162
Illinois128165
Arizona129180
Washington131153
Oregon132154
Utah133179
Minnesota134185
Montana134167
Nebraska135174
Pennsylvania135162
Colorado139186
Arkansas145202
United States146192
Missouri149211
Washington D.C.150218
Delaware151203
Massachusetts152260
New York152194
Rhode Island153203
New Jersey156210
Texas171231
California179246
Georgia179241
Kentucky192249
South Carolina193250
Louisiana212261
Maryland223274
Nevada227308
Florida243320
Michigan251295
Connecticut256333
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]

    Shop for Affordable Car Insurance

    Insurify partners with 70+ top insurers to provide free car insurance quotes

    Secure. Free. Easy-to-use.
    Based on 3,806+ reviews
    4.8/5
    Shopper Approved
    ProgressiveLiberty MutualTravelers

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

media logomedia logo
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.

Compare Car Insurance Quotes Instantly

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualTravelers

Latest Articles

View all