Affordable No-Credit-Check Auto Insurance (2023)

What You Should Know

• No credit check auto insurance is out there, you just have to look for it
• A bad credit rating can cost you over $5,000 annually on car insurance
• There are easy ways to improve your credit score
• You can get a free copy of your credit report

Although it can be difficult to find affordable no credit check car insurance, it is possible to get no credit check auto insurance quotes with some companies. If you’re in the market for a new auto insurance policy, or your current plan is up for renewal, you should be aware that your credit score has a significant impact on your auto insurance rates.

With a poor credit score, your insurance company could choose to raise your rates, cancel your policy, or refuse to insure you. Understanding auto insurance can help you make sense of why most auto insurance companies use credit score as one of the main factors that determine your auto insurance rates.

If your credit score is not exactly where you’d like it to be, this doesn’t mean you won’t be able to insure your vehicle. It just means that you’ll have to do your research in finding an insurance company that lets you buy no credit check auto insurance.

Keep reading to find car insurance companies that do not check credit and learn how to get insurance quotes without a credit check.

To get an auto insurance quote without a credit check, enter your ZIP code in our free tool. Start comparing quotes today to buy auto insurance with no credit check.

Auto Insurance and Credit Scores

Have bad credit? Your credit score and auto insurance quotes go hand-in-hand. Keep reading to find out why your rates may be higher with poor credit, car insurance companies that don’t check credit, how to get auto insurance without a credit check, non-credit-based car insurance, and more.

Can you get no credit check auto insurance?

Do all insurance companies run credit checks? If not, which companies sell auto insurance without a credit check? It might surprise you to learn that your credit score and auto insurance quotes are closely linked.

Most insurance companies will want to know your risk level before they offer to insure you.

There are some companies. However, that will never do a credit check on you. If you’re concerned that your credit score will negatively affect your insurance rates, you should get a quote from one of these companies to help you find cheap auto insurance with no credit check.

What are the best no credit check auto insurance companies?

If you’re in the United States, you can use our quote form to get no credit check auto insurance quotes. To find additional companies that won’t check your credit, you can contact your state’s insurance department for more suggestions.

What auto insurance does not check credit? Insurance companies like Allstate and Progressive auto insurance have been known to not use credit checks in determining rates. Their algorithms are always changing, so it’s best to check with each company first to make sure.

It’s also important to note that not all states allow the use of credit scores to determine car insurance rates. Currently, California, Hawaii, and Massachusetts don’t allow car insurance companies to take credit scores into account, making every company a no credit check auto insurance company.

What are the best bad credit auto insurance companies?

If no credit check auto insurance companies aren’t an option for you, or you’ve struggled to obtain no credit check car insurance quotes, some insurance companies offer reasonable rates to insureds with poor credit.

Geico auto insurance is one option across the country for drivers with poor credit. Choosing your best option for auto insurance with bad credit is as simple as shopping around. Talk to a licensed insurance agent and compare rates from multiple companies.

Why do auto insurance companies use credit scores?

Insurance companies check your credit because your credit score is a good indication of your financial stability and credibility (though not all the time). All insurance, be it homeowners, life, health, or automobile, is based on statistics and risk management.

Using these statistics, insurance companies have found that the lower a policyholder’s credit score is, the more likely they are to file claims, exaggerate claims, commit insurance fraud, or be late on payments. Like it or not, your credit score is an essential piece of information for insurance companies.

Of course, having a low credit score doesn’t make you a criminal. Having poor credit doesn’t mean you will commit insurance fraud or be a liability to your auto insurance company. It just means you’ll be grouped with other individuals who have poor credit, many of whom need high-risk car insurance.

Don’t take it personally. Remember, insurance scores are not there to predict your behavior. They’re there to predict the behavior of a group of people with similar credit histories.

Cheapest Companies Based on Credit Scores

Check out this table to see just how much your credit score affects your car insurance rates.

If you have good credit, you’ll pay around $260 a month for auto insurance. However, you’ll pay about $430 a month with bad credit. That’s an average difference of $170 a month, just based on your credit score.

Generally speaking, a good credit score is defined as one above 700. Let’s take a look at what Experian says about good credit:

A “good” credit score depends on the scoring system used by your particular lender.

Different scoring systems use different scales. However, if you have a good credit score from one of the credit reporting agencies, you’re likely to have a good credit score with your lender.

• Most credit scores fall between 600 and 750
• A score above 700 usually suggests good credit management

A bad credit score is typically below 600. If credit were the only factor insurance companies looked at, people with credit scores of 700 and above would always pay less than people with scores of 600 and below, but this is not the case.

What should you do if your auto insurance credit scores are low?

There are good and bad apples in every group. Having a good credit score does not mean a person won’t commit insurance fraud or submit bogus insurance claims. Don’t worry if your credit score is low. There are lots of ways to improve it, relatively fast.

Improving your credit score will help you get cheap auto insurance. And it will also help you when you buy a car or look for a mortgage.

Usage-Based Auto Insurance

Usage-based auto insurance uses telematics technology to track your driving habits and adjust your rates accordingly. Concerns related to usage-based auto insurance generally revolve around the lack of privacy inherent in having all your driving tracked and what companies do with all that gathered data.

However, if you have poor credit, it may be an option worth considering because credit score is not much of a factor for insurance companies that use your driving data to adjust your rates.

Companies like Root auto insurance are a good example of insurers that offer usage-based policies. You can also ask agents from major companies like Progressive about whether or not you qualify for their usage-based programs.

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How To Find Out Your Credit Score

To make sure your credit score will not negatively affect your auto insurance costs, you should obtain a copy of your credit report. If you’re in the United States, the Fair Credit Reporting Act says you’re entitled by law to receive one copy of your credit report each year.

A quick Google search for “free credit reports” will put you in touch with many of the companies that will run a credit check for you. You can also find information about your credit score directly from one of the three major credit-rating agencies—Transunion, Equifax, and Experian.

In general, if a company asks for your social security number (SSN), they’re most likely going to run a credit check on you.

We value your privacy and will never ask for your Social Security number when calculating your auto insurance quote. The good news is that you can get no credit check auto insurance rates in Florida, Texas, Michigan, New York, or any other state.

No matter what state you’re in, it’s best to shop around to get the cheapest car insurance out there.

No Credit Check Auto Insurance Quotes: The Bottom Line

Auto insurance companies consider credit score an indicator of whether or not you’ll be a responsible (and therefore lower risk) driver to insure. The higher your credit score, the lower your rates may be. The lower your credit score, the higher your rates may be. For drivers with poor credit, auto insurance rates average $430 per month, versus about $260 per month for drivers with good credit.

However, if you have poor credit, some companies don’t use credit scores as a factor in adjusting rates; you just have to shop around to find them.

Keep in mind that this review covers only the United States; no credit check car insurance in the UK, for example, could look much different.

Now that you know more about no credit check cheap car insurance, enter your ZIP code to start getting free auto insurance quotes without a credit check or to find cheap car insurance with bad credit.

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