Cheap Auto Insurance Companies That Don’t Check Credit in 2024
Auto insurance companies that don't check credit are 108% more expensive than companies that do. Car insurance companies that do check credit provide cheaper rates based on your credit score. California, Hawaii, Massachusetts, and Washington have outlawed credit-based auto insurance.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...
Insurance Operations Specialist
UPDATED: Oct 29, 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: Oct 29, 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
- On average, bad credit and no-credit-check auto insurance is 108% more expensive than someone with excellent credit
- Credit history correlates to risk
- Usage-based auto insurance programs can reduce your monthly rates
Why are car insurance companies that don’t check credit more expensive? Your credit history is one of the most critical factors that determine the cost of auto insurance coverages.
Sometimes your credit score can produce high car insurance rates. But don’t worry – we’re here to help.
Our guide shows you which insurance companies have no-credit-check policies. Also, we’ll explain various ways you can secure affordable auto insurance, even if with a bad credit score or no credit at all.
After you learn about auto insurance companies that don’t check credit, enter your ZIP code in the free online quote tool above to compare multiple companies near you.
Where can I find auto insurance companies that don’t check credit?
Car insurance companies in California, Hawaii, Massachusetts, and Washington have outlawed credit-based insurance rates.
However, the majority of states allow auto insurance companies to charge rates based on credit score.
Let’s look at the average cost of credit-based car insurance by various credit scores.
- No Credit – $227/month
- Bad Credit (300 to 579) – $227/month
- Fair Credit (580 to 669) – $187/month
- Good Credit (670 to 739) – $153/month
- Excellent Credit (740 to 799) – $128/month
- Exceptional Credit (800 to 850) – $109/month
No-credit-check auto insurance is $118 (108%) more than insurance attached to exceptional credit.
Car insurance companies that do not use credit scores are more expensive, but they’re usually restricted to a few states.
But what car insurance company does not check credit? No-credit-check auto insurance companies are spread out across the nation.
Insurance companies that ask for your Social Security number will likely look at your credit history.
For example, CURE Auto Insurance provides no-credit-check insurance policies, but it’s located in Pennsylvania.
Also, companies like Root Insurance are trying to remove credit-based insurance from their pricing systems.
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Which auto insurance companies don’t run credit checks for coverage?
It’s challenging to locate car insurance companies that provide no-credit-check insurance policies.
We found a few that are available outside of California, Hawaii, Massachusetts, and Washington. Here’s the list of insurance companies.
- CURE Auto Insurance (Pennsylvania and New Jersey)
- Dillo (Texas)
- Emperor Insurance (Texas)
Try shopping for car insurance in your local area to see if you can locate a company with no-credit-check car insurance.
Read more:
What are the best auto insurance companies that do check credit?
The top car insurance companies in the United States use credit history to determine insurance costs.
Here’s a list of the best auto insurance companies and their average rates based on fair, good, and poor credit.
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 |
USAA, State Farm, and Geico are the cheapest companies with credit-based car insurance rates. But USAA is only available for military veterans and their immediate families.
Why do car insurance companies check your credit? According to the Federal Trade Commission, auto insurance companies are part of a list of businesses that correlate credit to the risk of filing claims.
If you have good credit, you’re less likely to file a claim. But fair and poor credit correlates to higher claim frequency. Therefore, insurance companies charge more to offset the risk.
Car insurance with no credit is just as expensive as bad credit car insurance.
What companies provide no credit and bad credit auto insurance?
We’ve seen the best auto insurance companies, but what about smaller insurance companies?
Here’s a list of auto insurance companies that provide high-risk auto insurance in addition to standard policies.
- Access (in Arizona and Indiana)
- Alliance United (in California)
- Dairyland
- Direct Auto
- GAINSCO
- The General
- Infinity
- SafeAuto
- United Auto
These car insurance companies can help get coverage if you’ve been denied at other companies because of your credit history.
Read more:
- Dairyland Auto Insurance Review: Should you buy?
- Direct Auto Insurance Review
- Infinity Auto Insurance Review: Should you buy?
- SafeAuto Auto Insurance Review: Should you buy?
- The General Auto Insurance Review: Should you buy?
How do I save money on auto insurance when I have bad credit or no credit?
You can save money on car insurance when you qualify for several discounts. One of the most significant auto insurance deals is known as the safe driver discount.
Safe driver (or defensive driver) discounts can save 25% on car insurance. But you save more when you apply for usage-based auto insurance.
Usage-based auto insurance can provide a discount based on your driving habits. The better your driving behaviors, the more you’ll save.
You can also read more about finding cheap auto insurance for drivers with bad credit in this article.
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Can I improve my credit score?
The short answer is yes. Although paying for auto insurance won’t improve your credit, paying off any debts can improve your score.
If you don’t have any credit, try to get small loans of $1,000 or less. Your credit score will improve as you pay the money back to lenders, banks, or credit card companies.
Auto Insurance Companies That Don’t Check Credit: The Bottom Line
Some insurance companies don’t perform credit checks, but the car insurance companies that don’t check credit are more expensive.
However, you can lower insurance rates when you’re eligible for several car insurance discounts.
Now that you know more about auto insurance companies that don’t check credit, use our free comparison tool to compare multiple companies near you.
Frequently Asked Questions
Are there Auto Insurance Companies That Don’t Check Credit?
Yes, there are auto insurance companies that do not consider an applicant’s credit history when determining insurance rates. These companies focus on other factors such as driving record, age, location, and vehicle type to determine the premium.
Why would I choose an auto insurance company that doesn’t check credit?
There are a few reasons why you might choose an auto insurance company that doesn’t check credit:
- Poor credit history: If you have a less-than-perfect credit history, it may lead to higher insurance rates with companies that consider credit. Opting for a company that doesn’t check credit can help you secure more affordable coverage.
- Credit concerns: Some individuals may have concerns about privacy or believe that credit history is not a reliable indicator of their driving behavior. Choosing a company that doesn’t check credit allows you to focus solely on other factors that impact your premiums.
- Fairness and accessibility: Access to affordable auto insurance should not be solely dependent on credit history. Companies that don’t check credit aim to provide coverage options that are accessible and fair to individuals with varying credit backgrounds.
How can I find auto insurance companies that don’t check credit?
To find auto insurance companies that don’t check credit, consider the following steps:
- Research online: Look for insurance companies that advertise their policy of not checking credit. You can search using phrases such as “auto insurance without credit check” or “no credit check auto insurance.”
- Contact insurance providers: Reach out to insurance companies directly and ask about their credit-checking policies. Inquire if they have options available for applicants with no credit check or if they place less emphasis on credit history.
- Work with an insurance broker: Insurance brokers have access to multiple insurance providers and can help you find companies that do not consider credit history when determining rates.
What factors do auto insurance companies that don’t check credit consider when determining rates?
While credit history may not be a factor for these companies, they still consider other factors when determining insurance rates. These factors may include:
- Driving record: Your driving history, including accidents, tickets, and violations, plays a significant role in determining your premium.
- Age and experience: Younger drivers or those with less driving experience may face higher rates compared to more experienced drivers.
- Vehicle type: The make, model, and year of your vehicle can impact your insurance rates. Some vehicles may be more expensive to repair or more prone to theft, leading to higher premiums.
- Location: Where you live can affect your rates. Areas with higher accident rates or theft rates may result in higher premiums.
Are there any drawbacks to choosing an auto insurance company that doesn’t check credit?
While choosing an auto insurance company that doesn’t check credit may have its advantages, there are a few drawbacks to consider:
- Limited options: The pool of insurance companies that don’t check credit may be smaller, limiting your choices.
- Potentially higher rates: Although credit history is not a factor, these companies may compensate by placing more weight on other factors such as driving record or location, which could lead to higher premiums for some individuals.
- Availability by location: Some companies that don’t check credit may only operate in specific states or regions. It’s essential to ensure they provide coverage in your area.
- Limited discounts: Companies that don’t check credit may have fewer discount opportunities available compared to other insurers.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...
Insurance Operations Specialist
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.