Auto Insurance Companies that don’t Check Credit in 2021

If you’ve been a driver for a long time, you know that drivers can’t go without good auto insurance coverage. However, a bad credit score can get in the way. In this article, we’ll get you up to speed with auto insurance companies that don’t check credit.

Here, we’ll address all your questions and doubts about insurers that don’t use credit scores. We’ll also explain how and why bad credit affects insurance companies’ policy offers.

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1. Progressive

Progressive is a top-rated insurance company that offers various auto insurance plans, numerous discounts for careful and experienced drivers, 24/7 customer support, among other features. Additionally, there are annual savings for those who switch to Progressive. Full Review

  • Plenty of discounts
  • Snapshot device
  • Gap Insurance
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Progressive is a top-rated insurance company that offers various auto insurance plans, numerous discounts for careful and experienced drivers, 24/7 customer support, among other features. Additionally, there are annual savings for those who switch to Progressive. Full Review

Coverage

4.5/5

Additional services

4.8/5

Price

4.9/5

Customer Support

5/5

2. Allstate

Millions of people have chosen Allstate’s car insurance because of their great plans, personalized help from agents in their extensive network, and various discounts, among other things. Get a quick and free quote online and find out their rates. Full Review

  • Wide range of insurance products
  • Coverage in all states
  • Various discounts available
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Millions of people have chosen Allstate’s car insurance because of their great plans, personalized help from agents in their extensive network, and various discounts, among other things. Get a quick and free quote online and find out their rates. Full Review

Coverage

5/5

Additional services

4.8/5

Price

4.9/5

Customer Support

4.5/5

3. Dillo

Dillo is an auto insurance company from Texas that offers quick and affordable insurance plans. What’s great is that you can get their insurance with bad credit and no credit check. Solution for high-risk drivers, great discounts, and instant coverage are some of the superb things about this company. Full Review

  • All the usual coverage
  • Backed by a trusted company
  • Cheap rates
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Dillo is an auto insurance company from Texas that offers quick and affordable insurance plans. What’s great is that you can get their insurance with bad credit and no credit check. Solution for high-risk drivers, great discounts, and instant coverage are some of the superb things about this company. Full Review

Coverage

5/5

Additional services

4/5

Price

4/5

Customer Support

5/5

4. CURE

Cure, unlike other companies, doesn’t take credit score, education or your occupation into consideration, only how well you drive. It offers insurance at fair rates, and if you’re from NJ or PA and have bad credit, this company is an excellent option. Full Review

  • Various discount options
  • Generous coverage
  • 6% to 30% cheaper than average NJ and PA insurers
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Cure, unlike other companies, doesn’t take credit score, education or your occupation into consideration, only how well you drive. It offers insurance at fair rates, and if you’re from NJ or PA and have bad credit, this company is an excellent option. Full Review

Coverage

4.5/5

Additional services

4.8/5

Price

4.9/5

Customer Support

4.7/5

5. Empower Insurance Services

Empower Insurance is an award-winning company from Texas with more than 2000 agents in its network that offer coverage. In addition, this company offers various programs and features, which you can compare and find the best one for yourself. Full Review

  • Plenty of discount options
  • Award-winning company
  • Trusted biggest brand in Texas
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Empower Insurance is an award-winning company from Texas with more than 2000 agents in its network that offer coverage. In addition, this company offers various programs and features, which you can compare and find the best one for yourself. Full Review

Coverage

3/5

Additional services

4/5

Price

5/5

Customer Support

5/5

6. USAA

If you’re a military member and need insurance for your car, the USAA is precisely what you need. It offers collision and liability coverage and much more. Great discounts, features, accident forgiveness, and saving options are some of the things that should persuade you to switch to this company. Full Review

  • A++ rating on AM Best
  • Competitive premium pricing
  • Wide variety of insurance coverage
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If you’re a military member and need insurance for your car, the USAA is precisely what you need. It offers collision and liability coverage and much more. Great discounts, features, accident forgiveness, and saving options are some of the things that should persuade you to switch to this company. Full Review

Coverage

4.5/5

Additional services

4.8/5

Price

4.8/5

Customer Support

5/5

Methodology – How We Created the Reviews

To make sure that we only include the top companies in our reviews, we’ve checked various factors that you may want to consider when choosing insurance companies. Here are some of them:

Insurance coverage.

The usual insurance coverage includes bodily injury liability, property damage, collision, and ridesharing insurance.

Discount options.

Companies that provide an insurance quote without a credit check often offer various discounts that lower your premium. These discounts may be related to your driving record, your working or educational status, and the number of vehicles or policies you have.

Insurance service rating.

We also checked the ratings of the insurers in terms of financial stability and reputation among customers. These ratings may come from either AM Best or the Better Business Bureau (BBB).

Premium costs.

The actual amount of premium depends on your unique situation and other factors that insurers consider. Whenever this information was available, we checked the premiums charged by these insurance companies that do not use credit scores.

Customer reviews.

We also included what other customers think about the insurer’s services. We checked various platforms to get a feel of the company’s reputation among customers in terms of services, customer support, and claims processing.

Factors for rating.

Finally, we checked whether these companies have special factors they consider for calculating insurance costs. For instance, some of them focus on driving records instead of credit scores, while others take military service into account.

Detailed Reviews

Progressive
Progressive
Progressive

All-in-one insurance coverage with no credit check; drivers with some budget to spare

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  • Plenty of discounts
  • Gap Insurance
  • Snapshot device (tracks driving habits)
  • Low consumer service rating
  • Discounts vary per state

Progressive is the country’s third-largest auto insurance provider that’s perfect for careful drivers as well as experienced ones, thanks to its discount options. It’s also one of the best insurance companies that do not use credit scores when setting rates for customers. If you like all-in-one services plus added features, this is a great choice for you.

Progressive offers all the usual auto insurance features depending on your state. Some of its more unique coverages include Gap Insurance, a policy that covers you for the difference between your loan or lease balance and the vehicle’s value.

Meanwhile, Progressive’s discount features are perfect for drivers who have a great driving record. You’ll receive a Safe Driver discount when you go three years without any tickets or accidents.

Progressive also offers guaranteed car insurance for those with bad credit scores. Their software system automatically requests a report, but no representative sees or knows your insurance score.

Progressive has received an A+ ranking from AM Best and A- ranking from Better Business Bureau (BBB). It’s among the most valuable and impressive auto insurance companies in the industry.

On Credit Karma, Progressive has 4.1 out of 5 stars, with its application process being rated 3 out of 5 and its customer service 2.5 out of 5 stars. Customers are generally satisfied with the company’s services while complaints may take some time to be resolved.

Allstate
Allstate
Allstate

Drivers with bad to poor credit and/or minimal credit history

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  • Coverage in all states
  • Various discounts available
  • Wide range of insurance products
  • Poor customer support
  • Premium increases after the first term

Allstate, the fourth-largest auto insurance company in the US, offers robust products and services in all states. Its standard auto insurance coverage includes liability, collision, comprehensive, uninsured, and underinsured motorist, and personal injury protection.

Their optional insurance features and coverage are also impressive, putting it among the best no-credit-check auto insurance companies around. These optional features include rental reimbursement, roadside assistance, auto glass repair, new car, and gap coverage.

You can also enjoy great discounts, including a new car, bundling, anti-theft, and safe driving discounts. They also provide discounts for single, full-time students below 25 years old who maintain good grades.

If you use their homeowners’ insurance, you can benefit from the multi-policy discount, which bundles your Allstate homeowners policy with cheap auto insurance.

It’s important to remember, however, that pricewise, Allstate isn’t the cheapest. Its six-month premium costs $1,070, while the monthly premium is $178.

Thanks to its direct auto insurance with no credit check, Allstate ranks high in various ratings. On AM Best’s financial strength rating, it sports an A+ grade. It has an AA- from S&P Global ratings, and it’s the fourth highest out of 21 companies on the list by Moody’s Investors Service.

Meanwhile, customers are generally happy with Allstate’s services. On Consumer Affairs, it sports 4 out of five stars. Nearly all consumers praise its coverage and deals, while some negative reviews take note of the poor customer support, which has been given only 1 out of 5 stars.

Dillo
Dillo
Dillo

Budget-conscious and conservative Texas drivers

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  • Cheap rates
  • All the usual coverage
  • Backed by a trusted company
  • Poor customer support
  • Operates only in Texas

Dillo is a Texas-based auto insurance company backed by Empower Insurance. It offers inexpensive but great insurance coverage for people who have been struggling with their credit score. This company doesn’t take credit scores into account when calculating policies, so you’ll get the same product as the next customer — letting you take advantage of their competitive rates.

Dillo offers cheap auto insurance with no credit check at around $63 per month, which is lower than the national average of $80 per month. Their offers include all the usual policies and features one may expect from a full-service auto insurer.

Moreover, its discount offers are competitive. You can get a Multi-Car Discount if you insure more than one vehicle or their Proof of Prior Grants discount if you prove that you haven’t had a lapse of coverage. If your driving records are clean, then you can get a cheaper premium.

While Dillo is unrated, its underwriter, Empower Insurance, is among the most trusted companies around. Providing the cheapest auto insurance rates in Texas, this company is backed by a reliable mother company.

While its services are respected among loyal customers, Dillo’s online reputation suffers from the negative reviews of customers who’ve experienced troubles with customer support. Yet, these reviews are few and far in between, so it’s highly doubtful that they represent the overall experience of the majority of Dillo’s customers.

CURE
CURE
CURE

New Jersey and Pennsylvania drivers with low credit but good driving history

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  • 6% to 30% cheaper than average NJ and PA insurers
  • Generous coverage
  • Various discount options
  • Difficult claims filing
  • Operates only in NJ and PA

CURE is a fantastic auto insurance company that operates in New Jersey and Pennsylvania. This insurer doesn’t consider subprime credit scores or credit history; instead, it looks more closely at your driving history — something that’s more relevant than a credit score.

If you have a great driving history but a poor credit score, CURE is here to offer auto premiums that are generally lower than the car insurance monthly payments that its competitors charge. In NJ, CURE’s offers are 6% to 30% cheaper than the state’s average insurance premiums.

CURE offers a wide variety of coverage in terms of insurance, including $5,000 property damage coverage, $15,000 PIP medical expense coverage, and $10,000 extended medical expense benefits.

You can also benefit from many discount options. CURE’s multi-vehicle collision discount has 15% off on collision average, while its good driver discount offers 35% to 40% discount, depending on how many years you’ve been a good driver.

CURE has an A+ rating from BBB. As one of the best no-credit-check auto insurance companies around, it also racks up many positive comments from Google Reviews, which rates it around 3.5 stars out of 5.

Some negative reviews point out that CURE’s customer service has been unimpressive, but they are outnumbered by positive reviews. Many people also note that filing claims with CURE has been difficult, as the company is very thorough in terms of verifying claims.

Empower Insurance Services
Empower Insurance Services
Empower Insurance Services

Texas drivers with low credit and good driving performance

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  • Trusted biggest brand in Texas
  • Plenty of discount options
  • Award-winning company
  • Available only in Texas
  • Lengthy claims processing

With more than 40 years of experience in the insurance business, Empower Insurance Services has proven itself to be an excellent provider of auto insurance rates. It offers different levels of policies that fit every driver’s needs and budget.

This auto insurance company works with more than 2,000 independent agents across Texas, putting their network among the largest ones in the state. It also knows that car insurance based on credit score doesn’t always work for all drivers, so many of its programs don’t take credit history into consideration when calculating premiums.

Moreover, its discount offers provide better rates for low-income drivers. Its multi-car discount lets you save on policy when you insure more than one vehicle. It also offers discounts for homeowners who buy into their home insurance policies. If you have clean driving records, you’ll also benefit from great discounts.

Empower is rated A+ by BBB, meaning that they’re a highly trusted brand in the industry. With Empower, can you get car insurance with bad credit? Yes, you can — and this is one of the reasons it’s won the Company of the Year Award four times at the Professional Insurance Agents of Texas (PIATX).

Meanwhile, on Birdeye, a reviews platform, they sport a shiny 4-star rating out of 5. A huge majority of consumers are satisfied with the services they’ve received from Empower. On the other hand, a few negative reviews pointed out poor consumer support as well as lengthy claims processing.

USAA
USAA
USAA

Drivers on active military duty and/or veterans

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  • Wide variety of insurance coverage
  • A++ rating on AM Best
  • Competitive premium pricing
  • Limited local branches
  • Only available for military personnel

USAA is the fifth-largest auto insurance provider in the US, and it definitely packs a lot of benefits. A key reminder here is that USAA is open only to active military members, veterans, and their families.

If you’re eligible, you gain access to all the usual auto insurance coverage and discounts. On top of that, USAA offers guaranteed car insurance that sports added features like Accident Forgiveness and Rideshare Insurance.

USAA’s premiums typically range between $600 and $1,500 per year. The pricing depends not on your credit score but on your driving record, vehicle details, and discounts you’ve earned. Speaking of discount options, USAA offers many of them, including some for good drivers and good students, as well as military installation discounts. You can also save as much as 10% if you bundle your auto insurance with other coverage.

USAA is rated A++ by AM Best, indicating that you can expect solid quality and reliability from it. As it offers cheap auto insurance with no credit check, it’s highly rated by its happy customers. On Consumer Affairs, it has 4 out of 5 stars, with customers highlighting its features and offers that are well worth their price.

Few complaints pop up, and most of them have something to do with negative customer support experience and lengthy claims processing. These are common issues among customers, and positive highlights outnumber negative feedback.

Why do auto insurance companies check credit?

Checking credit is relatively new for insurance companies. And while they’re not required to check credit scores, 90% of auto insurance companies won’t provide an insurance quote without a credit check.

The main reason for this is the correlation between credit score and the frequency of insurance claims. According to a report by the Federal Trade Commission, credit-based insurance scores effectively predict the number of insurance claims that consumers file as well as the total cost of such claims.

The use of credit scores also benefits drivers since insurers will tailor insurance coverage to their needs. This results in cost savings, which in turn lead to relatively lower premiums.

But not everyone is happy with having their credit score checked. Vehicle insurance companies that don’t check credit exist across the US. For instance, the states of California, Massachusetts, and Hawaii ban insurers from using credit scores to calculate policy rates and premiums. The main reason: scores discriminate against good drivers with poor or minimal credit histories.

How does bad credit affect auto insurance?

A bad credit score affects auto insurance in similar ways as it affects loans, credit cards, and other financial applications.

In general, auto insurance companies see drivers with low or no credit at all as high-risk drivers. Specifically, insurers use scores to gauge the likelihood of delayed payments from drivers. In other words, bad credit affects auto insurance in that higher premiums are charged to offset the risks the companies are taking.

Still, your credit score is only one of the factors that insurers consider when rating your premium. They also consider your:

  • Age and Gender: younger, less experienced drivers often pay more for car insurance than older drivers, since they’re considered more prone to accidents.
  • Years of Experience: the longer your experience is behind the wheel, the less likely you’ll make mistakes that lead to violations or claims.
  • Claims history: bad credit and auto insurance often lead to a less than impressive claims history. If this is the case, you’ll likely pay a higher premium.
  • Driving record: insurers see your driving history as an accurate predictor of future performance. In a nutshell, the more traffic and driving violations you have, the higher your insurance premium will be.
  • Location: certain states charge a higher premium because of their unique requirements and regulations. Meanwhile, locations that are prone to floods, wildfires, and crimes also face high insurance rates.
  • The type of car you drive: car insurance monthly payments also depend on whether your vehicle costs more to replace. If you have a brand new sports car, you’ll pay a higher insurance premium than if you had a more common car model.

In a nutshell, auto insurance companies cannot give an auto insurance quote solely based on your credit score, although it’s still worth learning how to fix your score.

Are there any alternative solutions?

While insurance companies that do not use credit scores may sound like the best alternative, there are other ones to consider. So, we’re listing all the alternatives you can check out that may best fit your situation.

Rate Shopping 

Instead of choosing an insurer that doesn’t check credit, shop around for better rates. Rate shopping is effective and doesn’t affect your credit score since insurance companies only perform soft inquiries on your credit report.

Usage-based Insurance Policy by Telematics

Telematics devices measure a number of elements related to your driving. So, instead of credit scores, they consider performance, which is great if you’re a good driver.

This can help provide good car insurance for drivers with bad credit but great car handling in terms of:

  • Harsh braking
  • Rapid acceleration
  • Car mileage
  • Usage of a mobile device while driving
  • Time of the day you’re driving

As telematics devices link insurance premiums more closely to performance rather than credit, low-credit drivers will gain access to much more comprehensive policies.

And even though a usage-based insurance policy and telematics are relatively new to the industry, most popular companies are creating their own telematics programs to complement their standard pricing model for car insurance monthly payments.

Non-Standard Insurers 

Non-standard auto insurance is reserved for highly risky drivers and drivers whose situations don’t fit regular coverage and policies, such as someone who needs insurance but doesn’t own a car. These types of insurance are also offered by some of the most popular insurers in the country, but only for truly high-risk drivers.

The downside here is that they’re not the cheapest auto insurance options around — they charge non-standard, high premiums in exchange for insurance — although their offers are mostly similar to standard ones.

Ask for Discounts

You can also check whether you’re eligible for the various discounts the insurer offers. These discounts are meant to provide more cost flexibility for drivers with unique situations. For instance, you can earn a good driver discount after three years of having a clean driving record.

Other discounts you may be eligible for include a good student discount, multi-policy discount, or a pay-in-advance discount. Always ask the insurer for such options.

Build Your Credit Score 

A bad credit score and car insurance may be considered risky by most insurers, but you can always search for ways to fix your credit score. Building your credit takes time, but you can speed it up by paying bills regularly and reducing your debt. Moreover, you can use great credit repair companies to help you in the process.

Bad credit loans with guaranteed approval exist, too, so make sure you check those out before opting for companies that don’t check credit scores.

Auto insurance companies that don’t check credit – At A Glance

Auto insurance company Insurance Rating Discounts Best For
Progressive A+ (AM Best) Safe Driver

Teen Driver

Good Student

Homeowner

All-in-one insurance coverage with no credit check; drivers with some budget to spare
Allstate A+ (AM Best) New Car

Multiple Policy

Student with good grades

Drivers with bad to poor credit and/or minimal credit history
Dillo Unrated Multi-Car

Homeowners

Proof of Prior Coverage

Safe Driver

Budget-conscious and conservative Texas drivers
CURE A+ (Better Business Bureau) Multi-Vehicle Collision Discount

Good Driver

Parking

New Jersey and Pennsylvania drivers with low credit but good driving history
Empower Insurance Services A+ (Better Business Bureau) Multi-Car

Multi-Policy

Safe Driver

Empower Federal Credit Union

Texas drivers with low credit and good driving performance
USAA A++ (AM Best) Safe Driver

New Vehicle

Military Installation

Annual Mileage

Drivers on active military duty and/or veterans

Conclusion

Auto insurance companies are careful when it comes to considering credit scores for insurance premiums. The lower your credit score is, the higher your premium will be. Nonetheless, no-credit-check auto insurance companies can help you acquire robust insurance coverage even when you have little to no credit.

These companies focus on driving performance and history instead of credit, and they offer robust features and discount options to further help you benefit from their services. Overall, they’re a great alternative to traditional insurance companies. Just remember that it’s always a good idea to fix your credit score to access a wider variety of services.

FAQ

Why does credit affect car insurance?

Credit scores affect car insurance because insurers use such scores to determine the likelihood of missed payments from high-risk clients as well as the frequency of filing an insurance claim. The lower your credit score, the higher your insurance premium will be to offset the risk of insuring your car.

Does shopping for car insurance affect credit score?

No, it doesn’t. Since auto insurance companies also perform soft credit checks, rate shopping won’t hurt your credit score. A soft credit check isn’t recorded by major credit bureaus, so you’re free to compare and shop around for the best auto insurance rates that will fit your budget.

Do insurance companies report to credit bureaus?

No, they don’t. Insurance companies check your credit to know whether to insure you or not. They also use it to calculate your insurance premium. However, they don’t report your payments to any major credit bureau, so such payments, whether timely or untimely, won’t affect your credit score or history.

What’s a good auto insurance score?

A good credit score for car insurance is 700 or higher. Most insurance companies consider scores above 750 as excellent, and people with such scores tend to pay less for insurance than those with poor or no credit at all. However, there are also insurers that don’t check credit scores.

What is the lowest credit score acceptable for auto insurance?

The lowest credit score acceptable for auto insurance is somewhere between 600-700. Below that is considered to be poor credit, so you’ll either be offered high insurance premiums or denied the insurance. As a result, it’s recommended to build your credit score first before searching for cheap auto insurance.

Does car insurance build credit?

No, it doesn’t. Paying insurance premiums on time doesn’t improve your credit score since the payments aren’t reported to the credit bureaus. However, not paying on time can affect your credit score if your payments are turned over to a collections agency, which would be reported to the three major credit bureaus.

Do all car insurance companies check credit?

Most car insurance companies check a client’s credit score as part of their calculation of insurance premiums. However, not all of them take credit-based insurance scores into consideration. That’s because certain states ban the use of credit scores in insurance calculations to avoid discrimination against low-income drivers and clients.

Do auto insurance quotes affect credit score?

No, they don’t. When insurance companies give you a quote, they only check your credit score via a soft inquiry, which means the inquiry will not be visible to lenders and credit bureaus. Multiple soft inquiries don’t hurt your credit score since they’re not tied to any loan or credit.

Does Progressive do a hard pull?

No, it doesn’t. Progressive doesn’t use your credit score as the sole basis for deciding your insurance premium. Its software system automatically performs a soft pull on your credit reports, but no representative ever sees your report. It considers other more important factors when deciding to insure you or not.

Does Allstate use your credit score to determine the premium?

No, it doesn’t. Allstate is among the companies that don’t check credit scores when it comes to insurance premiums. It does, however, provide complete insurance coverage based on other important factors such as age, gender, driving experience, and insurance history, which are used in the calculation of its insurance premium.

Does bad credit affect car insurance?

Yes, it does. Most auto insurance companies consider your credit score when it comes to offering insurance. They consider bad credit as a high-risk factor, so they charge higher premiums when they insure your vehicle. However, you can still get insured by auto insurance companies that don’t check credit.