No Credit Check Auto Insurance

No credit check auto insurance is available, but most top auto insurance companies check your credit. Geico rates differ by $106 on average between fair and bad credit. Car insurance companies do not check credit in three states: Hawaii. Massachusetts, and California, Even in states where auto insurance companies do credit checks, it's still possible to get cheap auto insurance with bad credit if you shop around.

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Sara Routhier, Managing Editor of Features and Outreach, 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 worl...

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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 31, 2020

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Food for thought

  • Auto insurance companies generally check for credit history
  • Auto insurance companies will also examine your insurance history
  • Drivers with bad credit tend to file more claims than those with good or fair credit

The average cost of full coverage auto insurance is $1,029 per year. If you have a bad credit score, auto insurance companies will issue more expensive full coverage car insurance for bad credit.

Do auto insurance companies check credit? Are there some that don’t? Some companies offer no credit checks for auto insurance.

Will I pay more for no credit check auto insurance? What are the pros and cons of no credit check auto insurance? How do I sign up for no credit check auto insurance?

Continue reading to learn which auto insurance companies offer auto insurance with no credit checks and if it’s right for you.

Start comparing rates from companies that offer no credit checks for auto insurance in your local area right now by entering your ZIP code in our FREE comparison tool.

Does auto insurance do credit checks?

Are you wondering, do insurance companies pull your credit report? The answer is yes.

Auto insurance companies check for credit history. According to the National Association of Insurance Commissioners (NAIC), a customer’s credit history will determine the level of risk. Why do insurance companies check credit? Statistics show that drivers with better credit are less risky to insure.

The top auto insurance companies in the United States will look at your credit. Companies will also examine your insurance history.

Insurance history shows your history of how you’ve done business with insurance companies.

It’s important to make timely payments because it affects your insurance credit history. A person with a high frequency of claims may be at high risk for expensive auto insurance payments.

Your credit score is not a factor that determines auto insurance in California, Hawaii, and Massachusetts. Therefore, you will not be subject to undergo a credit check if you live in those states. California, Hawaii, and Massachusetts have banned auto insurance companies from using credit scores to increase rates or cancel auto insurance policies.

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What auto insurance does not check credit?

Does State Farm check credit for car insurance? Yes, it does.

Most auto insurance companies check your credit score, and it’s difficult to locate a company that won’t check your credit. In Texas, drivers can get auto insurance with no credit checks from a company called Dillo. If you don’t have an existing credit score, you may fall into the fair credit insurance rates. Let’s look at what those rates would look like from the top 10 auto insurance companies in the United States.

Average Auto Insurance Rates for Drivers with Fair Credit
CompaniesAverage Monthly Rates with Fair CreditAverage Annual Rates with Fair Credit
USAA$185$2,220
State Farm$238$2,853
GEICO$249$2,987
American Family$264$3,170
Nationwide$271$3,255
Farmers$325$3,899
Progressive$330$3,956
Travelers$362$4,344
Allstate$382$4,581
Liberty Mutual$467$5,604
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USAA auto insurance is the cheapest car insurance among the top 10 companies.

Does Geico auto insurance check your credit? Yes. Geico quotes use credit scores to calculate your auto insurance. It’s not likely that you’ll get a car insurance quote without a credit check.

Some drivers believe companies like Direct Auto insurance have no credit check. It’s not true. Direct Auto warns that companies that offer no credit check have more expensive rates.

Start looking for auto insurance quotes now with our FREE comparison tool! Enter your ZIP code now to learn how you can save money on insurance!

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Can you get car insurance with bad credit?

Yes, but your auto insurance rates will be expensive. According to the Federal Trade Commission, drivers with bad credit file more claims than drivers with good or fair credit. Let’s examine what full coverage auto insurance looks like for drivers with bad credit.

Average Auto Insurance Rates for Drivers with Bad Credit
CompaniesAverage Monthly Rates with Bad CreditAverage Annual Rates with Bad Credit
USAA$308$3,691
Nationwide$340$4,083
GEICO$355$4,260
American Family$372$4,468
Progressive$395$4,738
Farmers$405$4,864
State Farm$413$4,951
Travelers$430$5,160
Allstate$541$6,491
Liberty Mutual$734$8,802
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See the difference in cost. Look how much more auto insurance rates increase from fair to bad credit. USAA car insurance continues as the least expensive auto insurance company.

Can you pay car insurance monthly with bad credit? Absolutely. It’s encouraged and it improves your insurance credit history. However, your credit score won’t be affected. The Federal Deposit Insurance Corporation (FDIC) suggests that individuals with poor credit catch up on any past due balances or start paying on debts to improve their credit score. You might want to check Nationwide Mutual Insurance Company for car insurance with bad credit.

What are the pros and cons of no credit check auto insurance?

The pros prevent auto insurance companies from issuing rates based on credit. If you have good credit, it could offset cheap auto insurance rates. Individuals with bad credit would get a break from expensive auto insurance rates.

The cons are expensive auto insurance rates. If auto insurance companies can’t review your credit score, they’ll have to use other methods to measure the risk of the insured driver. Therefore, auto insurance companies will lean toward age, driving record, and vehicle to determine auto insurance.

Here’s a news report on how credit affects your auto insurance.

According to the Consumer Financial Protection Bureau (CFPB), an individual with no credit or bad credit face a number of financial barriers. A no credit check sounds good, but it hurts your chances to save money.

Now that you know the pros and cons of no credit check auto insurance, start looking for auto insurance companies in your local area. Enter your ZIP code in our FREE comparison tool to learn more.

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Can you get car insurance without a credit card?

Yes. You can make payments with a debit card, credit card, or bank account. Did you know that some auto insurance companies will offer a discount for automatic bill pay? Paperless billing is also known as electronic funds transfer (EFT).

EFT allows any business, government, or public institution to transfer funds electronically.

You can pay your auto insurance by checking account, debit card, or money order. Be sure to make timely payments to prevent cancellations. Improving your insurance credit history means cheap auto insurance in the future.

No Credit Check Auto Insurance: The Bottom Line

How can I save money on a no credit check policy? The thread and rubber to cheap car insurance with no credit checks are driving record, the vehicle, and the age of the driver. Auto insurance will be more expensive when a company doesn’t check your credit score. Shop around for companies that have the most discounts. The more discounts you have, the less you’ll pay for auto insurance.

Enter your ZIP code in our FREE comparison tool to see what discounts you’re eligible for in your local area.

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Frequently Asked Questions: No Credit Check Auto Insurance

Here’s a recap of what you’ve learned in this article. We’ve also included frequently asked questions you see in search engines across the web. Visit our main page for more articles, guides, and reviews.

Learn about which companies in your local area offer no credit check auto insurance by entering your ZIP code in the FREE comparison tool.

#1 – Can I get full coverage insurance on a no credit check plan?

Yes. The rates will be more expensive than average.

#2 – How do you file a claim with a no credit check plan?

Call 911 to make a police report, then contact your auto insurance company to alert them of your accident. The sooner you report the accident, the faster you can get a claim processed. Give the auto insurance company everything they need.

#3 – Where can I find cheap monthly car insurance?

That depends on where you live, what kind of vehicle you drive, your driving record, and the company that insures you. USAA is the cheapest auto insurance company, but it’s only available to members of the U.S. Armed Forces and their immediate families.

#4 – Are no credit check insurance companies reliable?

It depends. Customer experiences vary. To know whether a company is reliable will come from experience with the company or through reviews. Always check company reviews before you make a final decision.

References:

  1. https://www.naic.org/documents/consumer_alert_credit_based_insurance_scores.htm
  2. https://www.consumer.ftc.gov/articles/0152-credit-scores
  3. https://www.fdic.gov/consumers/assistance/protection/creditreport.html
  4. https://www.consumerfinance.gov/about-us/blog/using-alternative-data-evaluate-creditworthiness/

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