Buying No-Credit-Check Auto Insurance: What You Need To Know in 2024
While it’s possible to find bad credit car insurance or even no credit check auto insurance, you may have a hard time finding full coverage car insurance with no credit check.
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Schimri Yoyo
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active insurance licenses in seven states and over 20 years of professional experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ach...
Licensed Agent & Financial Advisor
UPDATED: Sep 16, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 16, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Some insurance companies offer auto insurance coverage without credit checks
- No credit check car insurance is likely unavailable for a full coverage policy
- You may be able to find cheap auto insurance with a low credit score
If you’re searching for car insurance, you may be worried a poor credit score will raise your rates. Many insurance companies rely heavily on credit scores to determine the likelihood of a policyholder filing an insurance claim. So, finding the best car insurance for bad credit may take some time.
Some companies offer no credit check auto insurance, but these companies often don’t provide full coverage. Additionally, their auto insurance premiums aren’t as cheap as most other companies.
You may be able to find bad credit car insurance at an affordable rate. However, the best way to find no credit check car insurance that fits your budget is to shop online and compare quotes from several companies in your area.
Which insurance companies offer auto insurance with no credit check?
While it’s not difficult to find auto insurance with bad credit, finding an insurance company that won’t consider credit score when setting insurance rates can be tricky and time-consuming.
Your credit score is less likely to impact your auto rates with the following companies:
- Progressive
- Allstate
- Dillo
- CURE
- Empower Insurance Services
- USAA
Even the companies listed above may consider your credit score when determining your insurance rates. So find a non-standard insurer that doesn’t allow your credit score to impact your premiums significantly.
In California, Hawaii, Michigan, Massachusetts, and Washington, state law dictates that insurance providers can’t consider your credit score when determining your rates. However, in other states, you may need to consider several options to find a company that offers you affordable coverage.
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What are the best car insurance companies for bad credit?
Some of the most popular non-standard car insurance companies offering coverage to individuals with bad credit in the U.S. include:
- Direct
- Kemper
- GAINSCO
- Dairyland
- The General
- Infinity
- National General
- Hallmark
- Foremost
- Founders Insurance
- Titan
- Bristol West
Most non-standard auto insurers will cover individuals who can’t find coverage with more well-known institutions, like Allstate and Farmers. So if you have bad credit, reach out to a few non-standard insurance companies to see how much you would pay for coverage.
The only way to know which company will offer you the best deal based on your credit score is to compare quotes from multiple providers. Comparing quotes will help you discover which companies will offer the coverage you need at a price you can afford.
Read more:
- Infinity Auto Insurance Review: Should you buy?
- Kemper Auto Insurance Review: Should you buy?
- National General Auto Insurance Review
Why does my credit score affect my insurance rates?
Individuals with low credit scores are statistically more likely to file a car insurance claim. While this correlation may not make much sense, it helps insurance companies predict which policyholders are more likely to file a claim and cost the company money.
The reverse of this statistic is also true, which is why most insurance companies reward good credit scores with lower insurance rates. So, the higher your credit score is, the less you’ll pay for coverage.
Since insurance companies view policyholders with low credit or no credit as higher risk, you’ll want to consider how you can find the cheapest insurance in your area with poor credit.
How can I find the cheapest car insurance with bad credit?
Car insurance rates vary for many reasons. Insurance providers take different factors into account when determining rates, such as:
- Age
- Gender
- Marital status
- Driving history
- Credit score
- ZIP code
- Coverage type
- Make and model of vehicle
Since companies calculate insurance rates differently, you won’t know which one offers the best rates until you compare quotes from several in your area.
The table below shows a comparison of monthly auto insurance rates with different well-known companies based on good, fair, and bad credit scores.
Average Monthly Credit-Based Auto Insurance Rates by Company
Companies Good Credit History Fair Credit History Bad Credit History
Allstate $322 $382 $541
American Family $224 $264 $372
Farmers $306 $325 $405
Geico $203 $249 $355
Liberty Mutual $366 $467 $734
Nationwide $244 $271 $340
Progressive $302 $330 $395
State Farm $181 $238 $413
Travelers $338 $362 $430
USAA $152 $185 $308
Some companies charge nearly $400 more monthly to people with bad credit scores. With this in mind, people with poor credit scores should search for companies that won’t offer similar rates.
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Does non-standard car insurance cost less?
Non-standard auto insurance, or high-risk auto insurance, often comes with higher rates for coverage because policyholders pose a higher risk of filing a claim. However, since non-standard car insurance companies typically only offer liability coverage, you could pay less for coverage than you did if you previously had a full coverage policy.
One of the best ways to save money on insurance is to choose a lower coverage level. You may be used to paying for a full coverage policy, but full coverage can cost more than two times what a liability-only policy costs.
The table below shows average auto insurance rates in each state based on a person’s coverage level.
Average Annual Auto Insurance Rates by State and Coverage Type
States Average Annual Liability Coverage Rates Average Annual Collision Coverage Rates Average Annual Comprehensive Coverage Rates Average Annual Full Coverage Coverage Rates
North Dakota $283 $252 $113 $741
South Dakota $289 $251 $110 $1,206
Iowa $293 $251 $231 $819
Wyoming $323 $270 $223 $817
Maine $334 $332 $147 $1,078
Idaho $337 $285 $118 $833
Vermont $341 $278 $118 $738
Kansas $342 $255 $130 $904
Nebraska $349 $294 $117 $1,058
North Carolina $358 $227 $228 $738
Wisconsin $360 $210 $126 $696
Indiana $372 $207 $172 $672
Alabama $373 $299 $146 $818
Ohio $376 $298 $202 $941
Arkansas $381 $305 $183 $869
Montana $388 $224 $206 $779
New Hampshire $393 $365 $123 $1,354
Tennessee $398 $290 $136 $824
Missouri $399 $255 $200 $843
Virginia $413 $265 $130 $808
Illinois $431 $237 $115 $725
Mississippi $437 $260 $166 $825
Minnesota $440 $303 $195 $935
Oklahoma $442 $212 $90 $856
Hawaii $458 $209 $111 $657
New Mexico $462 $358 $157 $1,300
California $463 $365 $99 $927
Utah $471 $254 $107 $832
Colorado $477 $263 $158 $899
Arizona $489 $259 $184 $932
Georgia $491 $298 $100 $856
Pennsylvania $495 $377 $122 $1,219
South Carolina $498 $200 $229 $718
Texas $498 $341 $187 $1,026
West Virginia $501 $319 $195 $1,016
Kentucky $519 $391 $209 $1,327
Alaska $547 $360 $141 $1,049
Oregon $553 $307 $132 $934
Washington $569 $250 $104 $923
Massachusetts $588 $383 $147 $1,252
Maryland $599 $359 $129 $1,075
District of Columbia $628 $449 $230 $1,308
Connecticut $634 $349 $126 $1,109
Nevada $647 $282 $103 $778
Rhode Island $720 $248 $165 $911
Michigan $722 $214 $173 $827
Louisiana $727 $249 $97 $680
Delaware $777 $297 $113 $1,186
New York $785 $265 $123 $745
Florida $845 $320 $154 $965
New Jersey $866 $267 $167 $897
Read more:
While you can expect to pay higher than your state’s average for liability coverage if you’re considered a high-risk driver because of your credit score, you may pay less than you would for a standard full coverage policy.
No Credit Check Car Insurance: The Bottom Line
Most companies will charge you more for coverage if you have bad credit or you don’t have credit at all. To avoid paying more for insurance because of your credit score, you may want to consider a non-standard insurance company.
Non-standard insurers offer car insurance to individuals considered high risk, including people with poor credit. However, expect to pay higher rates for liability coverage without the option to purchase a full coverage policy.
If you’re looking for affordable car insurance with no credit check, your best bet is to shop online and compare car insurance quotes with multiple providers to ensure you don’t overpay for coverage.
Frequently Asked Questions
Can I add additional coverage options to my no-credit-check auto insurance policy?
Additional coverage options, such as comprehensive and collision coverage, liability coverage, and uninsured/underinsured motorist coverage, may be available with no-credit-check auto insurance policies. It’s important to discuss your coverage needs with the insurance provider and understand the available options.
Is no-credit-check auto insurance available for all types of vehicles?
No-credit-check auto insurance is generally available for a variety of vehicles, including cars, trucks, motorcycles, and recreational vehicles (RVs). However, availability may vary depending on the insurance provider and the specific vehicle type.
Can I switch from no-credit-check auto insurance to a traditional policy in the future?
Yes, it’s typically possible to switch from no-credit-check auto insurance to a traditional policy in the future. As you work to improve your credit score, you may become eligible for coverage from traditional insurers who consider credit scores. It’s advisable to regularly review your options and compare quotes from different insurance providers to ensure you have the most suitable coverage.
Can no-credit-check auto insurance help improve my credit score?
No, purchasing no-credit-check auto insurance does not directly impact or improve your credit score. Credit scores are determined by various factors, such as payment history, credit utilization, and length of credit history, which are not influenced by insurance coverage.
What factors are considered when determining premiums for no-credit-check auto insurance?
No-credit-check auto insurance premiums are typically based on factors such as driving record, age, location, type of vehicle, and coverage limits. Instead of relying on credit history, these factors are used to assess the risk associated with insuring the individual.
Why would someone consider buying no-credit-check auto insurance?
People may consider buying no-credit-check auto insurance if they have a poor credit history or no credit at all. Traditional insurance companies often use credit scores as a factor in determining premiums, and individuals with low credit scores may face higher rates or even denial of coverage. No-credit-check insurance provides an alternative for these individuals.
What is no-credit-check auto insurance?
No-credit-check auto insurance is a type of insurance policy that does not require a credit check as part of the underwriting process. It allows individuals with poor or no credit history to obtain coverage without the credit score affecting their premium or eligibility.
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Schimri Yoyo
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active insurance licenses in seven states and over 20 years of professional experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ach...
Licensed Agent & Financial Advisor
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.