How can I monitor my credit score?

There are many different potential routes for keeping an eye on your credit score. You can purchase your credit score from each of the major credit bureaus or directly through FICO. However, there are also free resources for credit monitoring. This is an available option from several banks and credit card companies, as well as third-party services. You may want to double-check that a credit monitoring service is reputable before inputting personal information. Learn more: How to check my credit score

Does getting a car insurance quote impact my credit score?

When you seek a quote for car insurance, insurers may review your credit history as part of their assessment process in states where this practice is permitted, and Washington D.C. However, this should not worry you regarding your credit score. The type of credit check performed by insurance companies is a soft inquiry, which might be noted on your credit report but is unlikely to influence your score. Soft inquiries are different from hard inquiries, which can impact your credit score and are typically associated with applications for new credit.

How can I improve my credit-based insurance score?

It's important to recognize the distinction between your general credit score and your credit-based insurance score. Improving your overall credit score may not have a direct impact on your insurance score. However, consistently paying your bills on time is a fundamental positive step. Additionally, minimizing hard inquiries on your credit report can be beneficial. These strategies are not only good for your credit health, but might also assist in bettering your insurance score, potentially leading to more favorable insurance premium rates. Consider diversifying your credit by responsibly managing a mix of credit accounts, such as credit cards, loans and mortgages. This can demonstrate to lenders and insurers alike, that you have the ability to handle different types of credit responsibly. Also, keeping your credit card balances low relative to your credit limits can positively affect both your credit and insurance scores, as it reflects good credit utilization habits.

Do you have to have a good credit score to get insurance?

When looking for the best car insurance, good credit is likely to earn you a lower rate. But drivers with poor credit histories looking for car insurance often still have avenues to secure car insurance, though the journey might be slightly more challenging. While some insurers might hesitate to provide coverage to individuals with lower credit scores, viewing them as higher-risk, it's usually possible to find carriers willing to extend insurance. These drivers may face higher premiums as a reflection of the perceived risk. Conducting thorough research and exploring various insurance providers — for instance, insurers that specialize in high-risk consumers — could lead to finding a company that accommodates drivers with diverse credit histories.

What other factors affect my car insurance rates?

Car insurance companies consider more than a dozen rating factors when calculating your premium. Although your insurance score can significantly impact your rate, some other rating factors include the make and model of your vehicle, your driving record, claim history and how you use your car. Additionally, most states allow car insurance companies to use your gender, age and ZIP code to generate your premium.

What is a good credit score for insurance?

What constitutes a "good" credit score for insurance purposes can vary by insurer and is often influenced by several factors beyond just the numerical score. Typically, insurers use your credit-based insurance score to assess risk and determine premiums. Generally, scores in the higher ranges are viewed more favorably and could lead to more advantageous premium rates. While insurance scores and credit scores aren’t directly tied, it can still be helpful to know what constitutes a good credit score. The exact threshold for a "good" score might differ among companies, FICO defines a good credit score as anywhere from 670 and 739, with above 800 being excellent and below 579 being poor. It's important to note that each insurer has its own criteria for evaluating credit history and their impact on insurance rates.

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Car insurance rates by credit score

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Updated Jul 01, 2025

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Key takeaways

On average, drivers with poor credit pay 104 percent more for full coverage car insurance than those with excellent credit.
California, Hawaii, Massachusetts and Michigan prohibit or limit the use of credit as a rating factor in determining auto insurance rates.
Drivers with poor credit in New York pay one of the highest average rates for full coverage car insurance at $7,591 per year.

Does your credit tier impact your car insurance premium?

In most states, your insurance score can play a role in determining what you will pay for your car insurance premium. Why? Research shows in many cases that individuals with better credit history are less likely to file a claim against their insurance company, and carriers often reward customers who are less likely to file claims with a preferential rate. Drivers with a poorer credit history, meanwhile, may be more likely to file a claim, making them higher risks for the insurers, who compensate by charging more.

National average annual full coverage premium by credit rating

Poor credit	Average credit	Good credit	Excellent credit
$4,700	$2,924	$2,677	$2,301

Why does your credit record affect car insurance rates?

When evaluating your credit history, insurance companies use what is called a credit-based insurance score. All insurers create their own proprietary insurance score, and no two formulas are the same.

While each insurer has its own proprietary underwriting system for calculating an insurance-based credit score, common factors that usually factor into this score include:

Outstanding debt: This is the amount of debt you currently have.
Credit history length: This shows how long you have had an open line of credit.
Credit mix: This reflects different lines of credit, such as auto loans, mortgage loans and credit cards.
Payment history: This shows how well you have managed to pay your debts over time.
Pursuit of new credit: This shows recent attempts to open new lines of credit.

How credit record impacts insurance premiums by state

The impact of a credit record on insurance premiums can differ widely across states, as most jurisdictions permit insurers to factor in credit history when determining rates. This practice, combined with variables such as local accident probability, weather patterns, population density and the overall cost of living, contributes to the fluctuating nature of rates from one state to another.

The table below provides a snapshot of how these rates for full coverage policies vary by credit tier across various states, including Washington, D.C. It's noteworthy that states like California, Hawaii, Massachusetts and Michigan have regulations that limit or outright prohibit the use of credit data in setting average car insurance premiums.

Annual full coverage premium by state and credit rating


Alabama	Poor $3,759	Average $2,220	Good $2,055	Excellent $1,780
Alaska	Poor $4,161	Average $2,675	Good $2,478	Excellent $2,174
Arizona	Poor $4,978	Average $3,086	Good $2,771	Excellent $2,322
Arkansas	Poor $4,660	Average $2,665	Good $2,410	Excellent $2,089
California	Poor $3,108	Average $3,108	Good $3,108	Excellent $3,108
Colorado	Poor $6,377	Average $3,538	Good $3,225	Excellent $2,542
Connecticut	Poor $5,088	Average $3,390	Good $2,700	Excellent $1,862
Delaware	Poor $4,989	Average $3,187	Good $2,931	Excellent $2,438
Florida	Poor $8,333	Average $4,395	Good $3,864	Excellent $3,111
Georgia	Poor $5,462	Average $3,140	Good $2,863	Excellent $2,448
Hawaii	Poor $1,650	Average $1,650	Good $1,650	Excellent $1,650
Idaho	Poor $2,143	Average $1,530	Good $1,442	Excellent $1,289
Illinois	Poor $4,243	Average $2,711	Good $2,479	Excellent $2,057
Indiana	Poor $3,344	Average $1,901	Good $1,720	Excellent $1,401
Iowa	Poor $3,887	Average $2,193	Good $1,939	Excellent $1,602
Kansas	Poor $5,310	Average $2,757	Good $2,497	Excellent $2,051
Kentucky	Poor $5,483	Average $2,951	Good $2,658	Excellent $2,254
Louisiana	Poor $7,104	Average $4,394	Good $3,954	Excellent $3,245
Maine	Poor $3,417	Average $1,828	Good $1,631	Excellent $1,387
Maryland	Poor $5,463	Average $3,216	Good $2,917	Excellent $2,505
Massachusetts	Poor $2,058	Average $2,058	Good $2,058	Excellent $2,058
Michigan	Poor $5,865	Average $3,551	Good $3,193	Excellent $2,418
Minnesota	Poor $5,973	Average $2,914	Good $2,568	Excellent $2,168
Mississippi	Poor $4,706	Average $2,550	Good $2,318	Excellent $1,959
Missouri	Poor $4,628	Average $2,692	Good $2,495	Excellent $2,022
Montana	Poor $4,513	Average $2,530	Good $2,355	Excellent $2,005
Nebraska	Poor $5,123	Average $2,706	Good $2,406	Excellent $1,961
Nevada	Poor $5,912	Average $3,927	Good $3,639	Excellent $3,069
New Hampshire	Poor $3,731	Average $1,953	Good $1,735	Excellent $1,363
New Jersey	Poor $6,406	Average $3,428	Good $3,008	Excellent $2,266
New Mexico	Poor $4,111	Average $2,349	Good $2,160	Excellent $1,841
New York	Poor $7,591	Average $4,469	Good $4,031	Excellent $3,396
North Carolina	Poor $2,750	Average $2,083	Good $1,955	Excellent $1,873
North Dakota	Poor $4,064	Average $2,069	Good $1,799	Excellent $1,449
Ohio	Poor $3,217	Average $1,957	Good $1,806	Excellent $1,464
Oklahoma	Poor $5,151	Average $2,997	Good $2,737	Excellent $2,346
Oregon	Poor $4,047	Average $2,395	Good $2,198	Excellent $1,920
Pennsylvania	Poor $4,667	Average $2,635	Good $2,386	Excellent $1,936
Rhode Island	Poor $5,327	Average $3,358	Good $2,959	Excellent $2,555
South Carolina	Poor $3,944	Average $2,155	Good $1,955	Excellent $1,574
South Dakota	Poor $5,512	Average $2,604	Good $2,277	Excellent $1,795
Tennessee	Poor $4,342	Average $2,291	Good $1,991	Excellent $1,604
Texas	Poor $6,419	Average $3,068	Good $2,601	Excellent $2,217
Utah	Poor $3,847	Average $2,284	Good $2,098	Excellent $1,743
Vermont	Poor $2,701	Average $1,612	Good $1,489	Excellent $1,309
Virginia	Poor $4,277	Average $2,384	Good $2,142	Excellent $1,703
Washington	Poor $2,794	Average $2,052	Good $1,895	Excellent $1,643
West Virginia	Poor $4,630	Average $2,453	Good $2,178	Excellent $1,725
Wisconsin	Poor $3,390	Average $2,099	Good $1,921	Excellent $1,651
Wyoming	Poor $2,883	Average $1,883	Good $1,759	Excellent $1,473
District of Columbia	Poor $5,774	Average $3,258	Good $2,802	Excellent $2,357
Hawaii	Poor $1,650	Average $1,650	Good $1,650	Excellent $1,650
Idaho	Poor $2,143	Average $1,530	Good $1,442	Excellent $1,289
Illinois	Poor $4,243	Average $2,711	Good $2,479	Excellent $2,057
Indiana	Poor $3,344	Average $1,901	Good $1,720	Excellent $1,401
Iowa	Poor $3,887	Average $2,193	Good $1,939	Excellent $1,602
Kansas	Poor $5,310	Average $2,757	Good $2,497	Excellent $2,051
Kentucky	Poor $5,483	Average $2,951	Good $2,658	Excellent $2,254
Louisiana	Poor $7,104	Average $4,394	Good $3,954	Excellent $3,245
Maine	Poor $3,417	Average $1,828	Good $1,631	Excellent $1,387
Maryland	Poor $5,463	Average $3,216	Good $2,917	Excellent $2,505
Massachusetts	Poor $2,058	Average $2,058	Good $2,058	Excellent $2,058
Michigan	Poor $5,865	Average $3,551	Good $3,193	Excellent $2,418
Minnesota	Poor $5,973	Average $2,914	Good $2,568	Excellent $2,168
Mississippi	Poor $4,706	Average $2,550	Good $2,318	Excellent $1,959
Missouri	Poor $4,628	Average $2,692	Good $2,495	Excellent $2,022
Montana	Poor $4,513	Average $2,530	Good $2,355	Excellent $2,005
Nebraska	Poor $5,123	Average $2,706	Good $2,406	Excellent $1,961
Nevada	Poor $5,912	Average $3,927	Good $3,639	Excellent $3,069
New Hampshire	Poor $3,731	Average $1,953	Good $1,735	Excellent $1,363
New Jersey	Poor $6,406	Average $3,428	Good $3,008	Excellent $2,266
New Mexico	Poor $4,111	Average $2,349	Good $2,160	Excellent $1,841
New York	Poor $7,591	Average $4,469	Good $4,031	Excellent $3,396
North Carolina	Poor $2,750	Average $2,083	Good $1,955	Excellent $1,873
North Dakota	Poor $4,064	Average $2,069	Good $1,799	Excellent $1,449
Ohio	Poor $3,217	Average $1,957	Good $1,806	Excellent $1,464
Oklahoma	Poor $5,151	Average $2,997	Good $2,737	Excellent $2,346
Oregon	Poor $4,047	Average $2,395	Good $2,198	Excellent $1,920
Pennsylvania	Poor $4,667	Average $2,635	Good $2,386	Excellent $1,936
Rhode Island	Poor $5,327	Average $3,358	Good $2,959	Excellent $2,555
South Carolina	Poor $3,944	Average $2,155	Good $1,955	Excellent $1,574
South Dakota	Poor $5,512	Average $2,604	Good $2,277	Excellent $1,795
Tennessee	Poor $4,342	Average $2,291	Good $1,991	Excellent $1,604
Texas	Poor $6,419	Average $3,068	Good $2,601	Excellent $2,217
Utah	Poor $3,847	Average $2,284	Good $2,098	Excellent $1,743
Vermont	Poor $2,701	Average $1,612	Good $1,489	Excellent $1,309
Virginia	Poor $4,277	Average $2,384	Good $2,142	Excellent $1,703
Washington	Poor $2,794	Average $2,052	Good $1,895	Excellent $1,643
West Virginia	Poor $4,630	Average $2,453	Good $2,178	Excellent $1,725
Wisconsin	Poor $3,390	Average $2,099	Good $1,921	Excellent $1,651
Wyoming	Poor $2,883	Average $1,883	Good $1,759	Excellent $1,473
District of Columbia	Poor $5,774	Average $3,258	Good $2,802	Excellent $2,357

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What can I do to improve my credit score?

Enhancing your credit record is a vital aspect of managing your financial health effectively. Achieving a positive credit history could potentially unlock benefits such as loan approvals, more favorable interest rates and increased credit limits. For those whose credit histories are less than ideal, there are strategies that might assist in gradual improvement. The journey to build and boost your credit can be time-consuming, but it's often worth the effort, especially since it could lead to reduced premiums on your car insurance. Should conventional insurance providers offer rates that don't align with your budget, investigating options from insurers that don't require a credit check might be worthwhile, provided such alternatives exist in your region. The steps outlined below are designed to guide you in enhancing your credit history.

Pay your bills on time

Timely payment of your bills plays a crucial role in shaping your credit-based insurance score. A pattern of late payments or credit delinquencies might signal to insurers a potential risk in financial management, possibly indicating a higher likelihood of claim submissions for minor damages. By making it a habit to settle your bills on or before their due dates, you could positively impact your credit and, consequently, your insurance scores.

Keep hard credit inquiries to a minimum

Credit inquiries come in two forms: hard checks and soft checks. Whenever you apply for a line of credit, the company considering you as a customer will pull your credit report, which constitutes a hard inquiry and does affect your score. When insurance companies review your credit in the quoting process, that is considered a soft inquiry and shouldn’t have an impact on your actual credit tier. Too many hard inquiries can have a negative impact on your score. If you are trying to build your credit, you may want to consider waiting to apply for a loan or line of credit.

Monitor your score regularly

Consumers can check their credit score with the three national credit bureaus — Equifax, TransUnion and Experian — once a week for free, and it’s a good idea to do so. If you see a dip in your score, you will be able to respond quickly to bring it back up. It's also possible that a score may be impacted by an error or indicate identity theft, so monitoring your score regularly could allow you to quickly attend to a matter that needs to be corrected to avoid further financial problems.

Maintain old lines of credit

Maintaining long-standing credit accounts can be beneficial for your credit score, including the portion that influences your insurance rates. The duration of your credit history can contribute significantly to your score, accounting for 15 to 20 percent. Rather than closing an unused credit card, consider utilizing it sparingly and ensuring payments are made on time. This approach can help in fortifying your credit history and minimizing your credit utilization ratio, which is described below.

Be aware of your credit utilization ratio

In addition to the number of lines of credit you have, your credit utilization ratio will also impact your credit rating. Your credit utilization ratio is a measurement of how much credit you have available compared to how much you use. Although there is no set rule of how much of your credit you should be using, many finance professionals recommend that you utilize no more than 30 percent of your total available credit at any given time. If you are using more than 30 percent of your available credit, paying off some of your debt to bring your credit utilization score down may help improve your credit score and, in turn, your credit-based insurance score.

Frequently asked questions

There are many different potential routes for keeping an eye on your credit score. You can purchase your credit score from each of the major credit bureaus or directly through FICO. However, there are also free resources for credit monitoring. This is an available option from several banks and credit card companies, as well as third-party services. You may want to double-check that a credit monitoring service is reputable before inputting personal information.

Learn more: How to check my credit score
When you seek a quote for car insurance, insurers may review your credit history as part of their assessment process in states where this practice is permitted, and Washington D.C. However, this should not worry you regarding your credit score. The type of credit check performed by insurance companies is a soft inquiry, which might be noted on your credit report but is unlikely to influence your score. Soft inquiries are different from hard inquiries, which can impact your credit score and are typically associated with applications for new credit.
It's important to recognize the distinction between your general credit score and your credit-based insurance score. Improving your overall credit score may not have a direct impact on your insurance score. However, consistently paying your bills on time is a fundamental positive step. Additionally, minimizing hard inquiries on your credit report can be beneficial. These strategies are not only good for your credit health, but might also assist in bettering your insurance score, potentially leading to more favorable insurance premium rates.

Consider diversifying your credit by responsibly managing a mix of credit accounts, such as credit cards, loans and mortgages. This can demonstrate to lenders and insurers alike, that you have the ability to handle different types of credit responsibly. Also, keeping your credit card balances low relative to your credit limits can positively affect both your credit and insurance scores, as it reflects good credit utilization habits.
When looking for the best car insurance, good credit is likely to earn you a lower rate. But drivers with poor credit histories looking for car insurance often still have avenues to secure car insurance, though the journey might be slightly more challenging. While some insurers might hesitate to provide coverage to individuals with lower credit scores, viewing them as higher-risk, it's usually possible to find carriers willing to extend insurance. These drivers may face higher premiums as a reflection of the perceived risk. Conducting thorough research and exploring various insurance providers — for instance, insurers that specialize in high-risk consumers — could lead to finding a company that accommodates drivers with diverse credit histories.
Car insurance companies consider more than a dozen rating factors when calculating your premium. Although your insurance score can significantly impact your rate, some other rating factors include the make and model of your vehicle, your driving record, claim history and how you use your car. Additionally, most states allow car insurance companies to use your gender, age and ZIP code to generate your premium.
What constitutes a "good" credit score for insurance purposes can vary by insurer and is often influenced by several factors beyond just the numerical score. Typically, insurers use your credit-based insurance score to assess risk and determine premiums. Generally, scores in the higher ranges are viewed more favorably and could lead to more advantageous premium rates. While insurance scores and credit scores aren’t directly tied, it can still be helpful to know what constitutes a good credit score.

The exact threshold for a "good" score might differ among companies, FICO defines a good credit score as anywhere from 670 and 739, with above 800 being excellent and below 579 being poor. It's important to note that each insurer has its own criteria for evaluating credit history and their impact on insurance rates.

Methodology

Bankrate utilizes Quadrant Information Services to analyze July 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2023 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.

Written by

Ashlyn Brooks

Writer II, Insurance

Car insurance rates by credit score

Key takeaways

Does your credit tier impact your car insurance premium?

National average annual full coverage premium by credit rating

Why does your credit record affect car insurance rates?

How credit record impacts insurance premiums by state

Annual full coverage premium by state and credit rating

Compare auto insurance rates

Compare auto insurance rates

What can I do to improve my credit score?

Pay your bills on time

Keep hard credit inquiries to a minimum

Monitor your score regularly

Maintain old lines of credit

Be aware of your credit utilization ratio

Frequently asked questions

How can I monitor my credit score?

Does getting a car insurance quote impact my credit score?

How can I improve my credit-based insurance score?

Do you have to have a good credit score to get insurance?

What other factors affect my car insurance rates?

What is a good credit score for insurance?

Methodology

Credit-based insurance scores: