Your credit score is one of the key factors most car insurance companies use to determine your rates. According to a review by the National Association of Insurance Commissioners, over 90% of car insurance companies use your credit history as a tool in deciding what you qualify for. This is because your creditworthiness has social and financial implications, and essentially gives institutions an idea of how likely you are to pay what you owe. So does no credit check auto insurance exist?

Luckily, for those with poor credit scores, there are still options for car insurance. Read on to learn more.

In This Article

  • How Does Your Credit Score Affect What You Pay?

  • Auto Insurance Companies That Don’t Check Credit Scores

  • Auto Insurance Companies That Are Okay With Bad Credit

  • How To Raise Your Score

How Does Your Credit Score Affect What You Pay?

Your auto insurance rates are determined by a number of things, including (but not limited to) your driving history, the type of vehicle you drive, and your credit score. Unless you live in Massachusetts, Hawaii, or California, where state law prohibits insurers from considering credit scores, chances are the majority of auto insurance companies will check your credit history to decide your rates.

If your credit score is low, you’ll likely have a much higher premium. Why? Because your credit score is directly linked to risk. Studies have shown that the lower an individual’s credit score is, the more likely they are to file claims, exaggerate claims, commit insurance fraud, or be late on payments. Now, we understand that this is not always the case, but unfortunately, it’s a risk most insurance companies aren’t willing to take.

Auto Insurance Companies That Don’t Check Credit Scores

So, you have bad credit, but you need car insurance. Finding an auto insurance company that doesn’t check credit scores may seem like the best option, right? Well, here’s the thing: there aren’t many auto insurance companies that don’t check credit scores and those that do exist often have higher-than-average rates. This is because your creditworthiness is a meaningful factor in insurance decisions. So, while it may seem ideal, shopping and comparing quotes between both types of insurers is definitely recommended. FYI: Electing to get auto insurance without a credit check typically means you’ll be labeled as a “high-risk” driver. There are currently only a few known insurance agencies that do not check credit, and they are all local or regional brands.

1. Active Insurance Agency (IL)

  • What they say: “Active Insurance works with many insurers who do not use insurance scoring. This means that if you do not have the best credit history you will still be eligible for the best rates from Active Insurance.”
  • Other information: Active Insurance Agency is located in Chicago, IL. As an independent agent, they represent an assortment of companies. Learn more about Active Insurance Agency’s insurance without a credit check here.
  • Contact Active Insurance Agency by visiting this page.

2. Cure Auto Insurance (PA, NJ)

  • What they say: “CURE is the voice for responsible drivers who have been discriminated against by other auto insurers based on factors that shouldn’t impact auto insurance rates, such as education, occupation, and home ownership.”
  • Other information: CURE is only available to drivers in Pennsylvania and New Jersey, and they are headquartered in Princeton, New Jersey. Learn more about CURE’s policies and philosophy here.
  • Contact CURE by visiting this page.

3. Dillo Insurance (TX)

  • What they say: “At Dillo, you won’t have to worry about credit checks, lapse in coverage, accidents, or tickets. We’ll find you the best auto insurance rate.”
  • Other information: Dillo is available to Texas drivers only, and is online-only. Learn more about Dillo Insurance’s policies and philosophy here.
  • Contact Dillo Insurance by visiting this page.

Auto Insurance Companies That Are Okay With Bad Credit

While you can’t be denied insurance for a poor credit score, it can be a major factor in what insurance companies decide to charge you (in most states). However, the following auto insurance companies are much more accepting of lousy credit and will do whatever they can to find you the lowest rate possible.

4. Acceptance Auto Insurance

  • What they say: “Acceptance has been able to help many drivers with bad credit find a policy that suits their needs, and we will do our best to put together a policy that works for you, even if your credit history is less than perfect.”
  • Other information: Acceptance Auto Insurance is available in AL, AZ, CA, FL, GA, IL, IN, MS, MO, NV, NM, OH, PA, SC, TN, TX, and VA. Learn more about bad credit car insurance at Acceptance here.
  • Contact Acceptance Auto Insurance by visiting this page.

5. Direct Auto Insurance

  • What they say: “No matter your history and needs, we’ll work hard to find a way to help you get the coverage and rates you need – even if you’re considered high-risk.”
  • Other information: Direct Auto Insurance is available in AL, AR, FL, GA, LA, MS, NC, SC, TN, TX, and VA. Learn more about high-risk auto insurance plans at Direct here.
  • Contact Direct Auto Insurance by visiting this page.

6. The General

  • What they say: “The General offers auto insurance for drivers that have had a history of driving violations or accidents, have not kept their insurance in force or have less than perfect credit. So, you can still find a good price for your auto insurance needs.”
  • Other information: Although the only physical locations for The General Insurance are in Louisiana, they do their best to offer plans to individuals across the U.S. Click here to learn more about The General car insurance in your state.
  • Contact The General by visiting this page.

7. Good2Go

  • What they say: “Luckily for you, Good2Go Auto Insurance specializes in high-risk auto insurance. We understand how important it is for you to have your car, so we help high-risk drivers find the minimum limits that’s right for them.”
  • Other information: Good2Go offers auto insurance to drivers in every state across the U.S. Click here to learn more about Good2Go car insurance in your state.
  • Contact Good2Go by visiting this page.

How To Raise Your Score

Raising your credit score is the best thing to do if you’re having trouble finding an affordable auto insurance rate. You can’t erase a spotty driving record, but you can clean up your credit to get a better deal. The good news is bad credit doesn’t haunt you forever. Here are a few tips to raise your credit score and get back into auto insurance’s good graces.

  • Pay on bills on time. If you struggle to make payments, try setting calendar reminders, or even setting up automatic payments.
  • Don’t open or close any accounts. Closing multiple accounts at once or opening a new account can temporarily drop your credit score.
  • Keep your balances low. This goes for credit cards and any other revolving credit. High outstanding debt can negatively impact your credit score.
  • Check your credit report at least once a year. Raising your credit score starts with reviewing your credit report and checking for any errors. If you find any errors, contact the credit bureau.
  • Contact your creditors or see a credit counselor. If you’re having trouble making ends meet, a credit counselor can give you legitimate advice for raising your score responsibly. Your creditors may be able to offer you other payment options. Don’t be afraid to reach out!

In Summary

Although a poor credit score can have negative implications when it comes to auto insurance rates, there are options out there for you — whether you choose a no-credit-check insurance company, a company that’s okay with your poor credit, or you buckle down in an effort to raise your score. Regardless of which option you choose, it’s best to shop around to truly find the best (and most affordable) auto insurance premium for you and your situation. Best of luck!