Car Insurance Quotes with No Credit Check

No credit check insurance is car insurance that doesn’t factor credit scores into premiums. Companies won’t collect your credit score and use it to make a credit-based insurance score, so someone with bad credit and someone with good credit can expect the same prices, given all else is equal.

That being said, most insurance companies will check your credit and use it to determine your premiums, along with other factors. The reason is that credit scores provide information for insurance scores, which predict insurance losses. Someone with poor credit is more likely to file more car insurance claims and thus, cost companies more money. To make up for these risks, insurance companies charge people with bad credit more for their premiums upfront, protecting themselves financially.

Do You Have Bad Credit?

“Bad credit” isn’t a subjective term. If you fall between 300 and 499 for VantageScores or between 300 and 579 for FICO scores, you have bad credit.

How to Find Your Credit Score

• Online: https://www.annualcreditreport.com/requestReport/requestForm.action
• Phone: 877-322-8228
• Mail: Send this form (https://www.annualcreditreport.com/manualRequestForm.action) to:
  • Annual Credit Report Request Service
  • P.O. Box 105281
  • Atlanta, GA 30348²

Car insurance companies use credit scores to create credit-based auto insurance scores.

Along with other factors that affect car insurance rates, companies give higher rates to people with better credit scores, as they’re statistically less likely to file claims.³ However, companies don’t reveal their exact formulas for determining car insurance prices, so it’s hard to say exactly how important a credit score is when determining your car insurance rates.

However, not all states allow companies to take credit scores into account, and other states have specific regulations when it comes to credit scores.

• Hawaii, Michigan, California, and Massachusetts: According to Hawaii, Michigan, California, and Massachusetts law, car insurance companies can’t use credit scores to determine pricing. That’s great news for drivers with bad credit who live in these states.
• Maryland: Maryland lets insurance companies take credit scores into account when determining premiums, however, they can’t use scores to deny initial applications, cancel or refuse to renew a policy, or increase premiums after a renewal.
• Oregon: In Oregon, companies can’t cancel or refuse to renew a policy, or deny initial applications, due to a low credit score, similar to the laws in Maryland. Companies don’t have access to the entire credit report, as well, even when determining prices.
• Utah: While Utah insurance providers can base pricing on credit scores, it can’t be the only factor used. Plus, after you’ve been a customer for 60 days, companies can’t use your credit score to cancel or non-renew your policy or to decline coverage for a new vehicle. Rather, companies can only use your credit score for positive purposes, like giving you a discount (and not for removing a discount).

If you live in a state that doesn’t explicitly ban companies from basing pricing on credit scores, you could save money by improving your credit score. Here’s how.

1. Pay your bills on time: Paying your bills late will hurt your credit score, even if it’s just a day after the deadline.
2. Get rid of debt: We know this is easier said than done, but try to decrease your credit card balances as much as you can.
3. Limit your new credit requests: Every time you request a new line of credit, a lender does a hard inquiry, which hurts your credit. For the time being, limit your credit request, as hard inquiries will remain on your credit report for two years.
4. Make any outstanding payments: Again, easier said than done, but start with payments that are 90 days past due, then move on to 60, then 30 days.
5. Check your credit report for inaccuracies: Not all credit reports are perfect. You may spot fraudulent accounts from identity theft or even an account belonging to someone with a similar name. To dispute errors on your credit report, you’ll need to contact the credit-reporting agency directly.

Bad

If you have bad credit, you have two options:

• Usage-based insurance (UBI): Otherwise known as pay-per-mile insurance, UBI bases prices off of how much you drive and not your credit score. Allstate offers UBI through Milewise, while Nationwide offers it through SmartMiles.
• Telematics: Another metric that companies use to determine scores is your driving habits, tracked by telematics technology. If you’re a safe driver with poor credit, look for programs like Progressive Snapshot, State Farm Safe and Save, Allstate Drivewise, Geico DriveEasy, and Farmers Signal.

• Bundle: By bundling your home and auto insurance, or your auto and any type of insurance, most companies will give you a loyalty discount.
• Adjust your deductible: Raising your deductible will lower your premiums, as it means you’ll be more financially responsible for covered collision or comprehensive claims.
• Drop coverages: For the lowest prices, only get the minimum coverage your state requires. You also don’t need all types of coverage across the board. For example, you could drop collision coverage on an older car, or rental car coverage if you have multiple cars.
• Lower limits: Similar to raising your deductible, lowering your limits will lower your premiums, but will also pass off future financial responsibility to you, if you cause an accident.
• Get discounts: Finally, ask your agent what discounts apply to you. Could you save money by taking a defensive driving class, for instance? What about paying for your premium in one sitting? A quick conversation could lead to hundreds or even thousands of dollars in savings.

Only considering whether or not a company checks credit scores isn’t a good way to get reliable car insurance. You’ll need to take other factors into account, as well.

Cost

We don’t have to tell you this, but the cost of auto insurance is a major factor in your buying decision. Even no credit check companies may be too expensive for you to afford.

Customer Service

How can you contact a company and once you do, how quickly does it respond? Don’t overlook customer service, especially if you have frequent claims.

Discounts

Not all companies offer the same discounts. For example, while AAA will discount your prices for installing anti-theft devices in your vehicle, Clearcover will not.

Coverages

In the same vein, not all companies offer every type of coverage. You may need a company that offers roadside assistance, or ridesharing coverage for your weekends Ubering. Make sure you find a company that meets your needs in terms of the actual coverage.

Even if your credit score isn’t where you want it to be, you can still find affordable car insurance. Whether it’s by opting for pay-per-mile insurance or telematics, there are options available that don’t take your credit score into account. But remember that a credit score is not a permanent number. Rather, with some smart financial decisions, you can improve your credit, lower your car insurance rates, and save money.

Also, keep in mind that a good credit score isn’t the only factor you input when comparing quotes. There’s also your driving history/driving record, with more expensive prices for a high-risk driver, zip codes, and other factors.