Car insurance without a credit check does exist, but it is much less common than the phrase can make it sound. In most states, many insurers use information from your credit history to create a credit-based insurance score when determining eligibility or price.
That does not mean a low credit score prevents you from getting car insurance, and it does not mean an insurer that skips credit will automatically be cheaper. Your state rules, driving record, vehicle, coverage limits, deductibles, location, mileage, and insurer can all materially affect the quote you receive. [1]
Can You Get Car Insurance With No Credit Check?
Yes, in Some Situations
A small number of insurers advertise auto insurance that does not use a credit check to determine rates.
Your State Matters
Some states prohibit or significantly restrict the use of credit information in private-passenger auto insurance rating.
No Credit Does Not Mean Cheapest
An insurer that does not consider credit can still charge more because of your driving record, vehicle, coverage, location, or other factors.
Compare Equivalent Coverage
The best comparison uses the same liability limits, deductibles, drivers, vehicles, and optional coverages on every quote.
A Credit-Based Insurance Score Is Not the Same as Your Regular Credit Score
This distinction is important because consumers often hear that an insurer “checks credit” and assume the insurer simply looks at the same FICO score a lender would use.
Designed Around Credit Risk
A traditional credit score is primarily intended to estimate how likely you are to repay borrowed money according to the scoring model.
Designed Around Insurance Risk
A credit-based insurance score uses information from credit history to help estimate insurance loss or claim risk. The formula and weighting can differ by insurer and state. [2]
“No Credit Check” Does Not Automatically Mean “Cheap”
Removing credit from the pricing equation does not remove all of the other factors an insurer can evaluate. Depending on state law and the company’s rating plan, your premium may still be influenced by factors such as:
Progressive similarly cautions that buying from an insurer that does not check credit does not necessarily produce a lower premium. [3]
Where Can Credit Be Restricted in Auto Insurance?
Insurance regulation is primarily state-based. The rules are not uniform, and a simple national list can hide important differences between a total prohibition, a restriction on rating, and limitations on underwriting.
| State | Credit Treatment | What Drivers Should Know |
|---|---|---|
| California | Credit not an authorized primary rating factor | California law requires auto rates to be based primarily on driving safety record, annual mileage, and years of driving experience, plus approved optional factors. [4] |
| Hawaii | Credit bureau rating prohibited | Hawaii law prohibits an insurer from basing a motor-vehicle insurance standard or rating plan on a person’s credit bureau rating. [5] |
| Massachusetts | Credit information prohibited | Massachusetts prohibits insurers from using credit information obtained from consumer reporting agencies for auto underwriting or rating. [6] |
| Michigan | Special restrictions | Michigan’s auto reforms prohibit the use of a consumer’s credit score as a rating factor. The state’s regulatory guidance contains additional rules governing insurance scores, so Michigan should not be reduced to a simple national “credit ban” label. [7] |
Insurance rules can change. Always verify current requirements with your state’s insurance regulator or with the insurer providing the quote.
Auto Insurers Advertising No-Credit-Check Options
There is no large nationwide group of insurers that universally promises to ignore credit in every state. Availability is one of the biggest limitations of true no-credit-check auto insurance.
Dillo Insurance
TexasDillo currently advertises auto insurance for Texas drivers with no credit check and states that its insurance rate does not depend on the consumer’s credit score. [8]
CURE Auto Insurance
New Jersey · Pennsylvania · MichiganCURE says it has never required credit checks to determine car insurance rates and bases pricing primarily on driving-related information. [9]
CURE’s privacy notice says the company does not use credit reports when underwriting a policy, but it may obtain credit information where permitted for marketing or research. Therefore, “credit not used for underwriting” is more precise than claiming that no credit information can ever be accessed. [10]
You May Still Find a Cheaper Policy From an Insurer That Uses Credit
This is one of the biggest weaknesses in shopping only for the phrase “no credit check.” A better approach is to compare car insurance quotes from multiple insurers using equivalent coverage.
Option A: No-Credit-Check Insurer
Credit may not be used in the rating decision, but the insurer may have limited geographic availability or may price other risk factors differently.
Option B: Standard Insurer
The company may use a credit-based insurance score where permitted, but its base rate, discounts, vehicle pricing, or underwriting model could still produce a lower total premium for you. Reviewing other ways to lower your car insurance rates can therefore matter more than focusing exclusively on credit.
How to Find Cheap Car Insurance When Credit Is a Concern
Instead of searching only for a company that ignores credit, build the comparison around the total price and protection you actually receive.
Start With Your State
Determine whether your state prohibits, restricts, or permits the use of credit information in auto insurance.
Use the Same Liability Limits
A quote with lower liability limits is not directly comparable with one providing substantially more protection.
Match Your Deductibles
Keep collision and comprehensive deductibles consistent when comparing premiums.
Check Discounts
Ask about multi-car, bundling, safe-driver, low-mileage, payment, telematics, and other available discounts.
Compare More Than One Insurer
Different underwriting and rating models can produce very different prices for the same driver.
Verify the Final Policy
Before paying, confirm the insurer, drivers, vehicles, limits, deductibles, optional coverage, effective date, and total premium.
Other Ways to Save if Your Credit Is Hurting Your Rate
Shop Again
Insurers weigh rating factors differently, so another company may price your profile more favorably.
Review Deductibles
Increasing a deductible may reduce premium, but choose an amount you could realistically afford after a covered loss.
Consider Usage-Based Programs
Some insurers offer programs that consider mileage or driving behavior. Availability and pricing effects vary.
Check Every Discount
Bundling, multiple vehicles, safe driving, automatic payments, or other discounts may reduce your final cost.
No-Credit-Check Car Insurance Questions
Can I really buy car insurance without a credit check?
Yes, depending on where you live and which insurers operate there. Certain states restrict the use of credit in auto insurance, and a small number of insurers explicitly market coverage without using credit to determine rates.
Does bad credit mean I cannot get car insurance?
No. Poor credit does not automatically prevent you from obtaining insurance. Where credit-based insurance scores are permitted, credit information may affect underwriting or price along with other factors.
Is a credit-based insurance score the same as my FICO score?
No. Both can draw from information in your credit history, but they are designed to predict different risks and can use different scoring formulas.
Will no-credit-check insurance always be cheaper?
No. The insurer may still price your driving history, vehicle, location, coverage selections, claims history, mileage, and other legally permitted factors differently.
Which car insurance companies do not require a credit check?
Availability is limited. Dillo currently advertises no-credit-check auto insurance for Texas drivers. CURE says it does not use credit reports when underwriting auto policies and writes coverage in New Jersey, Pennsylvania, and Michigan. Always verify current availability directly before relying on an insurer-specific claim.
Can improving my credit eventually reduce my insurance premium?
In states where credit-based insurance scores are legally permitted, improved credit information may eventually affect an insurance score and premium. The timing and impact depend on the insurer, scoring model, state rules, and when the insurer recalculates the score.
What should I compare besides price?
Compare liability limits, collision and comprehensive deductibles, uninsured motorist coverage, optional protections, exclusions, discounts, policy term, fees, and the actual insurer issuing the policy.
Compare the Policy — Not Just the Credit Check
Use the same coverage selections across quotes and compare the final price from available insurers for your ZIP code.
Compare Car Insurance QuotesReferences
- National Association of Insurance Commissioners. Credit-Based Insurance Scores. ↩
- Progressive. Credit-Based Insurance Scores. ↩
- Progressive. What Is No Credit Check Auto Insurance? ↩
- California Legislature. Insurance Code § 1861.02 — Automobile Rating Factors. ↩
- Hawaii Revised Statutes § 431:10C-207. Discriminatory Practices Prohibited. ↩
- Massachusetts Division of Insurance. Basics of Auto Insurance. ↩
- Michigan Department of Insurance and Financial Services. Auto Insurance Consumer Protections. ↩
- Dillo Insurance. No-Credit-Check Auto Insurance Information. ↩
- CURE Auto Insurance. Rating and Credit-Check Information. ↩
- CURE Auto Insurance. Privacy Notice and Credit Information Practices. ↩