Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Jan 13, 2020

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Auto insurance companies base premiums on risk and one of the most recent factors added to the risk formula is your credit score. Although a credit score certainly doesn’t define how good a driver you are it can predict the risk associated with a policyholder filing a future claim.

Need no credit check auto insurance? Compare Auto Insurance Quotes and find affordable coverage online.

Credit scores group people into categories and are used by all financial companies to predict risk. Whether that is the risk of defaulting on a loan or filing an auto insurance claim studies do show people with lower credit scores have a higher risk to insure.

How can my credit score predict I am a higher risk to insure?

Think about this. If you have good credit then you probably have a credit card and some money in the bank to cover unexpected expenses whereas if you have poor credit you probably have much more limited access to credit and cash.

How this correlates to auto insurance is that studies show people with bad credit scores often file more minor claims purely due to the fact they have no other option if they want their vehicle fixed or medical expenses covered.

There is no data we can find that correlates a lower credit score with filing a higher claim but there is a wealth of data proving bad credit consumers do file more claims.

What auto insurance companies do not use credit scores?

A lot of auto insurance companies offer no credit check auto insurance but its estimated that well over 80 percent of all providers do use credit scores as a factor in the application process.

Finding a no credit check auto insurance company can be a little difficult depending on where you live, especially if you are looking for coverage with comparable premiums to typical auto insurance policies for people with good credit.

Much like credit card companies who specialize in bad credit the auto insurance companies who do offer no credit check car insurance often have higher premiums and lower coverage options. Think of them as the sub-prime lenders of the auto insurance industry.

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The good news is that there are some very reputable high risk auto insurance companies out there such as the General Auto Insurance Company who offer auto insurance options at reasonable rates.

However you always have to shop around and follow some golden rules when searching for auto insurance with no credit check:

  • Never take the first quote
  • Pay attention to the details of coverage – lower rates may also mean a lot less coverage
  • Make sure the provider has a good track record when it comes to handling claims
  • Call your Department of State and make sure they are licensed

You also want to never assume all of your preferred auto insurance companies will deny an application solely based on a credit score.

Always apply with your preferred providers first as some auto insurance companies give less weight to your credit score than you may think. Not every Progressive or Allstate customer has good credit.

How much is auto insurance with no credit check?

This depends on which auto insurance company you choose. While some providers offer no credit check auto insurance with comparable premiums to many typical insurers there are others who charge up to 200 percent or more for this privilege.

It’s more important than ever to shop around and compare no credit check auto insurance quotes from multiple providers before accepting a policy.

Should I pull my credit score before shopping for auto insurance?

Absolutely! Understanding your credit score and the details of your report can help you gain a perspective of your overall credit profile and an opportunity to dispute negative items which can improve your score. Sometimes even disputing negative information will automatically improve your credit scores overnight!

At least temporarily until the investigation of the disputed items is complete. This window of time may be just what you need to get affordable insurance rates from a preferred provider. Never underestimate the temporary power of disputing information on your credit report.

Use our FREE tool to compare auto insurance rates today!

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  1. Do auto insurance companies check credit?
  2. How much is no credit check auto insurance?
  3. Who are the top 10 auto insurance companies?
  4. How do I switch car insurance companies?