By Derek Nguyen · Editor
Published · Updated
Answer in brief
Outside the four ban states, insurers that use no credit information at all are a small minority—mostly non-standard specialists whose customers tend to have thin or poor credit anyway, and some telematics-first or pay-per-mile programmes that price mainly on measured driving. Far more common are insurers that use credit but weight it lightly, which can be nearly as good. The practical method is to ask each insurer directly, compare quotes from several, and include non-standard and usage-based options in the set. We do not name companies; their practices change by state and year.
Where no-credit insurers tend to be found
- Non-standard specialists. Insurers built for drivers with violations, lapses or no history often rate without credit or with minimal weight, because their book is not credit-sensitive.
- Telematics-first programmes. Some price mainly on measured driving after an initial period, which reduces or replaces credit's role.
- Pay-per-mile insurers. Mileage-based pricing in some programmes uses little or no credit.
- Regional and mutual insurers. A few do not use credit as a matter of policy; this varies by state.
The question to ask
"Do you use a credit-based insurance score in rating in my state, and how heavily is it weighted?" Agents and quote lines can answer the first part; the second is often vague, but "it's one of many minor factors" versus "it's a primary tier factor" is a meaningful difference. Ask also whether the insurer will re-rate if your credit improves mid-term—many will.
Why 'weights it lightly' can be enough
The difference between a poor-credit and excellent-credit premium at a heavily credit-weighted insurer can be 100%. At a lightly weighted insurer it may be 10–20%. If the lightly weighted insurer's base rates are competitive, a poor-credit driver may do better there than at a no-credit insurer with higher base rates. Compare total premiums, not policies about credit.
Questions & answers
Are there auto insurers that don't check credit at all?
A minority, mostly non-standard specialists and some usage-based programmes. Which ones varies by state.
Is no-credit insurance more expensive?
Sometimes. Non-standard base rates can be higher, so a lightly credit-weighted mainstream insurer may be cheaper overall. Compare.
Will an insurer tell me if they use credit?
Yes—they are required to disclose it, and must send an adverse action notice if it raises your rate.
Terms used in this guide
- Non-standard insurance
- The market segment for drivers with violations, lapses, no history or other factors standard insurers price steeply. Often uses credit lightly or not at all.
- Telematics (usage-based insurance)
- Pricing based partly on measured driving behaviour via an app or device. Shifts weight away from credit at many insurers.
- Pay-per-mile insurance
- A policy priced as a monthly base plus a per-mile charge. Some programmes use little or no credit information.
- Credit-based insurance score
- A score derived from your credit report and weighted to predict insurance losses. Used as a rating factor in most states; banned in California, Hawaii and Massachusetts, with Michigan barring use of the credit score itself.
Sources and references
Legal figures on this page (minimum limits, filing periods, statutory benefits) are checked against the primary law or the state insurance regulator listed below. Links and figures last verified Nov 2026.
- MCL 500.2111 — permitted and prohibited rating factors — Michigan Legislature, MCL 500.2111(4)Primary lawInsurers may not set auto rates on sex, marital status, home ownership, educational level, occupation, postal zone or credit score (as defined in § 2162).
- Insurance Code § 1861.02 — rating factors and Good Driver Discount — California Legislative Information, Cal. Ins. Code § 1861.02Primary lawRates must be determined by, in decreasing order of importance, driving safety record, annual miles driven and years of driving experience; optional factors may follow. Good Driver Discount policies must be at least 20% below the rate otherwise charged.
- Credit-based insurance scores (insurance topic) — National Association of Insurance CommissionersState insurance regulatorIn most states insurers may not use a credit score as the sole reason to raise rates or decline, cancel or non-renew; many states require adverse-action notices.
- State chart: use of credit reports/scoring in underwriting — National Association of Insurance Commissioners (2025)State insurance regulatorState-by-state statutory summary; e.g. Massachusetts (auto rates may not be based on credit), Michigan (credit score prohibited, MCL 500.2162), Maryland (credit may rate a new auto policy only).
- Background on: Insurance scoring — Insurance Information InstituteIndependent researchWhat credit-based insurance scores are; Arkansas regulator data showing credit lowered premium on ~57% of auto policies and raised it on ~23%.
- Background on: Pay-as-you-drive auto insurance (telematics) — Insurance Information InstituteIndependent researchUsage-based and per-mile pricing models, what telematics programmes measure, and state limits on their use.
- Nine ways to lower your auto insurance costs — Insurance Information InstituteConsumer guidanceShop at least three quotes; raising a deductible from $200 to $500 can cut collision/comprehensive cost 15–30%, $1,000 can save 40%+; drop physical damage on cars worth under 10× the premium; bundling, low-mileage and good-student discounts.
Practical guidance on this page is original editorial work. Cited sources support factual statements and do not endorse this site. Dollar ranges described as typical or illustrative are editorial estimates, not figures from these sources.
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