Yes, you can get car insurance without a credit check, but your options are primarily regional insurers like CURE Auto Insurance and Dillo, usage-based telematics programs, or by living in a state where using credit for pricing is banned. Major national carriers like State Farm, Geico, and Progressive almost always check credit where permitted by law. The key is that "no credit check" doesn't mean cheaper insurance; you often pay higher base rates, and insurers may use other factors like driving history and claims records as substitutes.
The practice of using credit-based insurance scores (CBIS) is widespread because, according to industry data from the Federal Trade Commission (FTC) and insurers like ISO, there is a strong correlation between credit history and claim likelihood. However, specific companies and programs bypass this check under certain conditions.
Regional & Specialty Insurers Offering No-Credit-Check Policies
A handful of insurers explicitly market policies without credit checks, often focusing on specific states or driver niches.
- CURE Auto Insurance: Operating in a few states like New Jersey and Pennsylvania, CURE is known for not using credit, occupation, or education in its pricing, relying solely on driving record.
- Dillo Insurance: Available in Texas, Dillo advertises a "soft credit check" that doesn't impact your score but primarily uses telematics (driving behavior) for pricing.
- Some Local Mutual Companies: Smaller, regional mutual insurance companies may have underwriting rules that exclude credit. This requires direct inquiry in your local area.
Usage-Based Insurance (UBI) Programs
Many major companies offer an alternative: a telematics program. While your initial quote may involve a credit check, your final premium is primarily determined by your driving data. This can effectively sideline a poor credit score.
- Progressive Snapshot®: The premium adjustment is based on driving habits, not credit.
- Allstate Drivewise®: Similarly, focuses on mileage, braking, and speed.
- State Farm Drive Safe & Save™: Uses driving data to calculate discounts.
State Regulations Prohibiting Credit Use
The most straightforward way to avoid credit checks is to reside in a state that bans or severely restricts the use of credit in setting auto insurance rates. In these states, all insurers are prohibited from using your credit history.
| State | Regulation Overview |
|---|
| California | Proposition 103 prohibits the use of credit, zip code, gender, or marital status in auto insurance pricing. |
| Massachusetts | State law bans the use of credit information for personal auto insurance. |
| Hawaii | Insurance code forbids the use of credit scores for auto insurance underwriting or rating. |
| Michigan | Since 2021, the use of credit scores has been banned for setting auto insurance premiums. |
If you don't live in one of these states and need to avoid a credit check, your best path is to first inquire with regional carriers like CURE in your area, then consider enrolling in a UBI program from a major insurer. Be prepared for potentially higher premiums, as the insurer is accepting more risk by not using a key predictive data point.
