Don't Let Credit Scores Control Your Car Insurance Premiums — Here's How to Find Affordable Options

The Hidden Cost of Poor Credit on Your Insurance Bill

Your credit score doesn’t just affect your loan approval — it can dramatically impact how much you pay for car insurance. Research shows that drivers with poor credit (300-579 range) shell out approximately $2,729 annually, while those with excellent credit (800+) pay around $1,308. That’s a staggering 48% difference for identical coverage.

Between poor and average credit tiers alone, you’re looking at a $489 yearly gap. For someone already struggling financially, this becomes an additional burden that compounds over time.

Insurance Companies That Skip the Credit Check

If your credit history is less than perfect, you’re not out of options. Several insurers have decided to deprioritize credit scores in their underwriting process. Here are the key players:

Dillo Insurance operates exclusively in Texas and completely disregards your credit profile when calculating premiums. The company even works with drivers who have spotty driving records or coverage gaps — a rarity in the industry.

CURE Auto Insurance takes a different approach across Michigan, Pennsylvania, and New Jersey. Rather than weighing credit history, occupation, or education level, this carrier bases rates primarily on your actual driving behavior. If you’re searching for cheapest car insurance in NJ, CURE represents a legitimate option worth comparing.

Root Insurance still reviews credit but refuses to make it the dominant factor. The company prioritizes your driving record above all else, meaning a strong track record can offset a lower credit score.

Breaking Down Insurance Costs Across Credit Tiers

The financial impact of credit-based pricing becomes clearer when you examine the full spectrum:

• Poor credit (300-579): $2,729/year
• Average credit (580-669): $2,240/year
• Good credit (670-739): $1,841/year
• Excellent credit (740-799): $1,537/year
• Exceptional credit (800-850): $1,308/year

The difference between the lowest and highest tiers amounts to $1,421 annually — money that could go toward savings, emergency funds, or other necessities.

State Regulations: Your Credit Protection

Several states have recognized the inequity of credit-based insurance pricing. California, Michigan, and Massachusetts either prohibit or significantly limit how insurers use credit information in their underwriting decisions. Before shopping for a policy, check your state’s Department of Insurance website to understand your local protections.

Steps to Strengthen Your Credit Profile

While exploring credit-blind insurers, it’s worth simultaneously improving your credit standing. Stronger credit opens doors beyond just insurance:

• Prioritize paying all bills on time — payment history accounts for 35% of your FICO score
• Reduce existing debt balances whenever possible
• Avoid applying for multiple new credit lines simultaneously
• Maintain older accounts in good standing

Choosing the Right Insurer Goes Beyond Credit Policies

Finding affordable coverage requires looking at the complete picture. Howard Goldberg, VP of customer solutions at Plymouth Rock Assurance, emphasizes: “Drivers should understand which coverage limits fit their situation and what those coverages actually mean.”

When comparing quotes, ensure you’re evaluating the same deductibles and coverage limits across companies. A lower premium might mean less protection, not better value.

Beyond credit policies, evaluate:

• Quality and responsiveness of customer service
• Claims handling process and speed
• Discount offerings and loyalty programs
• Payment flexibility and options
• Financial stability ratings (A.M. Best and similar agencies)
• Track record and market presence
• Coverage options that match your actual needs

Goldberg recommends consulting an independent insurance agent who can review your specific situation. If shopping independently, obtain multiple quotes and carefully compare what each package includes — sometimes the cheapest option sacrifices critical protections.

The Bottom Line

Your credit score shouldn’t be a permanent barrier to affordable car insurance. Whether you’re in New Jersey, Michigan, Texas, or elsewhere, credit-friendly insurers exist and often compete aggressively on price and service quality. Take time to research your state’s regulations, explore companies that don’t rely heavily on credit, and most importantly, compare complete coverage details across multiple providers.