Car Insurance Rates By Credit Score [2025]

Building and maintaining good credit is hard work. But that hard work can pay off. A strong credit score can help you qualify for lower rates on loans or the best rewards credit cards, and it can even benefit you when you shop for car insurance. In many states, insurance companies can use your credit during the underwriting process to decide your rates.

How does credit affect car insurance? A high credit score could allow you to save hundreds on auto policies. For example, those with excellent credit pay about 18% less for full coverage policies than those with poor credit.

Improving your credit can be an effective way to lower your car insurance premiums and save on coverage.

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Average car insurance by credit score

I take great pride in my credit score. I didn't always have good credit (or any financial savvy), so keeping my score in the "excellent" range is a priority for me. My focus pays off in the form of lower rates on car insurance, helping me save on my policies.

In general, the better your credit score, the less you'll pay for car insurance. Boosting your credit score from poor to average can reduce your full coverage policies by about $45 per month. Over 12 months, the rate difference causes those with poor credit to pay about $540 more for insurance.

	Full coverage	Liability-only coverage
Excellent credit	$190	$101
Good credit	$183	$97
Average credit	$186	$99
Poor credit	$231	$123
Data provided by Insurify

Tip

You'll notice that those with excellent credit have higher average premiums than those with good or average credit. That fact doesn't mean they pay a penalty for their higher score; rather, those with excellent credit can qualify for more favorable loan terms and higher loan amounts, so they may purchase more expensive vehicles. Because of the higher value of the purchased vehicles, their car insurance costs more.

What is a credit-based insurance score?

There are several types of credit scores and credit scoring models. You're likely familiar with FICO and VantageScore, but your credit-based insurance score is a different tool.

In many states, insurers use credit-based insurance scores as one factor in the underwriting process. Several companies, including FICO, create credit-based insurance scores for insurance providers.

Credit-based insurance scores use a different formula than other credit scores. For example, here's how a traditional FICO score compares to its credit-based insurance score:

	Traditional FICO score	FICO credit-based insurance score
Payment history	35%	40%
Credit utilization	30%	30%
Length of credit history	15%	15%
New credit	10%	10%
Credit mix	10%	5%

As you can see, the FICO credit-based insurance score plays more weight on a consumer's payment history than the traditional FICO credit score.

Tip

I think one of the frustrating things about credit-based insurance scores is there isn't an easy way for consumers to look up their own scores. However, while your FICO score won't be an exact match, a strong FICO or VantageScore typically matches up with a high credit-based insurance score.

Cheapest car insurance companies by credit type

Although many major insurance companies use credit scores (when allowed by state laws), how much your credit score will affect your rates varies by insurer. On average, insurers charge those with poor credit about $47 more per month for coverage than those with excellent credit, but the difference can be more significant with some insurers.

Here are the cheapest insurance companies.

Average monthly premiums for full coverage
Company	Excellent credit	Good credit	Average credit	Poor credit
Auto-Owners	$53	$64	$69	$107
Erie	$65	$86	$97	$156
Mile Auto	$67	$80	$93	$105
USAA	$91	$92	$97	$113
CSAA	$96	$125	$131	$140
State Farm	$96	$114	$120	$175
GEICO	$105	$109	$118	$128
Root	$113	$109	$118	$137
Allstate	$117	$122	$127	$154
Progressive	$126	$142	$148	$179

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State-by-state variations in credit-based insurance pricing

How much your credit score affects your rates is partially dependent on where you live. In some states, the impact of your credit score can be significant.

For example, drivers with poor credit pay $377 per month for coverage in New York, while those with excellent credit pay just $230 per month.

In Tennessee, the difference is minor. Those with poor credit pay $152 for coverage, while those with excellent credit pay $145.

Average full coverage rates
	Excellent credit	Good credit	Average credit	Poor credit
Alabama	$133	$135	$134	$163
Arkansas	$168	$189	$199	$252
Arizona	$155	$161	$158	$201
California	$231	$203	$192	$267
Colorado	$248	$224	$227	$295
Connecticut	$205	$199	$199	$269
Washington D.C.	$257	$295	$403	$462
Delaware	$239	$259	$282	$313
Florida	$217	$236	$255	$310
Georgia	$240	$226	$232	$297
Iowa	$135	$121	$116	$159
Idaho	$125	$114	$113	$138
Illinois	$167	$155	$155	$184
Indiana	$131	$132	$133	$154
Kansas	$170	$154	$153	$183
Kentucky	$174	$164	$168	$194
Louisiana	$216	$202	$200	$261
Massachusetts	$169	$175	$178	$229
Maryland	$326	$327	$339	$388
Maine	$143	$141	$140	$182
Michigan	$261	$273	$269	$341
Minnesota	$201	$195	$194	$259
Missouri	$171	$171	$172	$200
Mississippi	$162	$181	$185	$241
Montana	$181	$155	$149	$196
North Carolina	$101	$101	$100	$124
North Dakota	$122	$128	$128	$158
Nebraska	$170	$164	$162	$211
New Hampshire	$96	$107	$107	$136
New Jersey	$152	$154	$177	$201
New Mexico	$157	$147	$147	$178
Nevada	$231	$247	$249	$320
New York	$230	$260	$322	$377
Ohio	$119	$116	$117	$137
Oklahoma	$176	$162	$161	$196
Oregon	$140	$140	$142	$170
Pennsylvania	$158	$178	$184	$199
Rhode Island	$179	$181	$182	$228
South Carolina	$249	$262	$271	$315
South Dakota	$140	$134	$129	$180
Tennessee	$145	$131	$131	$152
Texas	$229	$214	$220	$282
Utah	$168	$161	$165	$212
Virginia	$195	$187	$191	$218
Vermont	$130	$145	$143	$175
Washington	$169	$162	$158	$192
Wisconsin	$131	$133	$133	$172
West Virginia	$137	$153	$152	$179
Wyoming	$102	$95	$91	$121
Data provided by Insurify

Which states ban using credit scores for car insurance pricing?

Credit-based insurance scores are a common practice in the insurance industry. However, not all states allow it. As of 2025, California, Hawaii, Maryland, Massachusetts, and Michigan all have laws in place that ban or limit insurance companies' use of credit scores in determining policy rates.

The use of credit-based insurance scores is fairly controversial, and people may not realize how their credit scores and insurance rates are connected. Critics say the use of credit-based insurance scores disproportionately affects low-income households, people of color, and those who are credit invisible or who avoid using credit.

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Why insurance companies use credit information

Why do insurers use credit scores? Studies have shown that there is a high correlation between insurance scores and the likelihood of filing insurance claims. In general, insurance companies have found that those with higher credit scores tend to file fewer claims.

From a business standpoint, insurers use credit scores as a way to gauge risk, so it's one of several factors they consider when setting rates.

Car insurance options for drivers with poor credit

When I was building my career, I avoided credit cards and loans. I was so focused on not accumulating debt, that I ended up hurting myself because I had no credit history. If you're like me and don't have enough credit history — or if you have less-than-perfect credit — there are ways to find affordable car insurance:

Shop around: Some companies place a smaller emphasis on credit than others. In general, we found that USAA, Geico, and Root had lower-than-usual price variations between credit score ranges.
Consider usage-based insurance (UBI): UBI policies differ from traditional car insurance in that it bases your premiums on your vehicle usage and driving habits. If you drive fewer miles than most drivers and drive safely, you could slash your premiums.
Find out if you qualify for special state programs: Some states, including California and New Jersey, have special programs for low-income households. For example, drivers in California could pay as little as $279 per year for coverage under the state's low-cost car insurance program. Visit your state transportation website to find out if there are similar programs in your state.
Ask about discounts: If you currently have insurance, contact your agent or the insurance company's customer support department to ask about potential discounts. There may be discounts you aren't aware of, such as paid-in-full, multi-policy, or good student discounts, which can help you save money on car insurance.

How to improve your credit for better insurance rates

Improving your credit takes time, but with consistency, your score can increase over time, helping you qualify for lower car insurance rates. To boost your credit, follow these tips:

Pay your bills on time: Credit-based insurance scores prioritize payment history above other factors. Set up automatic payments, or set up calendar reminders so you make all of your payments on time.
Pay down your debt: How much of your available credit you use is the second-most important factor affecting your credit. Paying down your balances can help improve your credit.
Limit new credit inquiries: Multiple new credit inquiries can make creditors nervous. Limiting new credit inquiries to only once or twice a year — when you really need a new loan or credit card — can minimize the impact to your score.
Monitor your credit: You can view your credit reports for free at annualcreditreport.com. If you find any inaccuracies or errors, you can dispute them online:

FAQs

Does checking my insurance quote hurt my credit score?

No, requesting quotes for car insurance doesn't damage your credit. When insurers provide quotes, they perform soft credit checks, which have no impact on your credit score.

Does paying my insurance build credit?

Insurance companies don't report payments to the major credit bureaus, so paying your insurance doesn't affect your credit. However, if you use a credit card to make your payments — and pay it off in full each month — you can establish a positive payment history, which can positively affect your credit.

Can I be denied insurance because of bad credit?

Whether an insurer can deny you coverage because of your credit depends on your state. Some states have laws that allow insurance companies to only use credit scores to determine rates; your credit cannot be the only factor they consider to deny you coverage.

How often do insurance companies check credit?

How often an insurer can check your credit varies by state. With some, they can check your credit when you apply for coverage and at every renewal. In other states, they can check your credit every three years.

What other factors affect my car insurance besides credit?

Other factors affecting your car insurance premiums include:

Your age
Gender
Car make and model
Typical mileage
Location
Driving record

Can I ask for an exception if my credit was damaged by circumstances beyond my control?

If your credit was damaged due to extenuating circumstances, such as a catastrophic illness or the death of your spouse, some insurance companies allow customers to submit requests for an exception. If you think your credit has hurt your car insurance premiums, contact your insurance company for guidance.

How can I find out my insurance score?

Insurance companies don't have to tell you what your credit-based insurance score is, and consumers can't look it up themselves. However, your insurance score is likely to be similar to your FICO or VantageScore. These scoring models use the same information as your insurance score, so it will be similar.

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Bottom line

Your credit score does more than affect car loan rates or credit card offers; it also impacts how much you have to pay for car insurance. In most states, having very good to excellent credit can help you save you hundreds on auto coverage, while poor credit can cause you to pay much higher premiums.

However, poor credit doesn't mean you're stuck with expensive coverage forever. Making your payments on time, paying down your debt, and limiting new credit inquiries can allow you to improve your credit. Over time, those good habits will allow you to better your credit and qualify for lower car insurance rates.

In the meantime, shop around and request quotes from the best car insurance companies to find the most affordable coverage.

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