Good Credit Auto Insurance Discount

If you’re wondering how to get a discount on auto insurance and you have good credit, at least four national insurance providers offer a good credit auto discount. To qualify for this savings opportunity, you must live in an approved state and have an excellent credit score. However, in some states, it’s illegal for companies to base insurance premiums on non-driving factors like credit score.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Jul 15, 2021

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A Concise Overview

  • Currently, at least four national insurance companies offer a good credit auto insurance discount
  • In some regions, a better credit score leads to cheaper quotes because companies assume you are lower-risk
  • In other states, using non-driving factors like a credit score to determine insurance costs is illegal

If you have excellent credit and are wondering how to get a discount on auto insurance, know that four national providers offer a good credit auto insurance discount.

Whether you’re insuring two cars for one driver or need coverage for the whole family, keep reading to learn how your credit score can help you earn cheap auto insurance rates.

After learning about good credit discount rates, enter your ZIP code into our free tool above to get free auto insurance quotes from the top providers near you.

What is a good credit auto insurance discount?

A good credit auto insurance discount rewards drivers with a slight rate reduction for having a responsible credit score. Usually, the rate reduction is minor and lasts as long as your credit score stays within certain boundaries.

Properly maintaining a good credit score can benefit both your finances and your auto insurance premiums.

However, according to the National Association of Insurance Commissioners (NAIC), the credit-based insurance score used by providers is not the same as your actual credit score. Usually, it includes information about your payment history, outstanding debt, credit history length, and any pursuit of new credit.

Depending on where you live, your credit score might already be impacting your auto insurance rates.

In some states, having poor credit is considered high-risk, leading to higher than average auto insurance quotes for everyone. In this scenario, instead of receiving a rate reduction, car insurance quotes for drivers with good credit will be cheaper during the underwriting or renewal process.

In other states, using non-driving factors like credit score and gender to determine insurance costs is illegal.

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Which companies offer a good credit discount on auto insurance?

If you want to buy good credit discount auto insurance, only four national companies offer this specific savings opportunity. However, there may be local agencies near you offering this discount as well.

Take a look at the four different providers offering good credit discounts below:

  • Nationwide
  • Progressive
  • Safeco
  • State Farm

When it comes to auto insurance, your age, driving record, and coverage needs also impact your premiums. Therefore, State Farm might be the best good credit auto insurance discount company for your neighbor, whereas Nationwide might provide you with cheaper overall rates.

To truly secure your lowest prices, compare quotes from multiple providers online before choosing a company.

Good Credit Auto Insurance Discount: The Bottom Line

Does good credit lower car insurance costs? For many people, the answer is yes. However, it depends on what provider you use.

Laws and regulations in your region might also impact your ability to earn a good credit discount.

No matter what, it’s worth asking about easy-to-earn discounts for auto insurance, including insurance bundles or a safe driver discount.

Now that you’ve compared affordable good credit auto insurance discounts enter your ZIP code into our free quote tool below to compare rates from the best companies near you.

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