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Car insurance for drivers with good credit

Updated May 13, 2024
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Best car insurance companies for drivers with good credit

We based our picks for the best car insurance for people with good credit based on average rates, available coverage, discount opportunities and third-party ratings for financial strength from AM Best and customer satisfaction from J.D. Power. If you have a good credit profile, these five companies might be worth considering:

Insurance company Average annual premium for minimum coverage Average annual premium for full coverage
Auto-Owners $376 $1,645
USAA $433 $1,673
Geico $463 $1,732
Travelers $535 $1,794
American Family $523 $1,513

Auto-Owners could be a solid choice for drivers who have good credit history. Not only does the company offer low average rates, but there are several add-on coverage options for better financial protection. Auto-Owners sells a variety of endorsements, like gap insurance, diminished value coverage, roadside assistance and the Personal Automobile Plus package, which includes 10 additional coverage types like cell phone replacement insurance. Auto-Owners also offers a number of car insurance discounts.

USAA sells car insurance to active duty and retired military service members and qualifying family members. If you are affiliated with any branch of the military, you may be able to take advantage of USAA’s highly-rated customer service, reliable coverage and generous discounts, like savings for good drivers, being claims-free, taking a defensive driver course and garaging your vehicle on base. USAA also consistently gets high customer satisfaction scores per J.D. Power’s U.S. Auto Insurance Study, although it doesn’t qualify for official ranking due to its eligibility restrictions.

Geico is well known for being one of the cheapest car insurance companies on the market. In fact, Geico tied for Best Auto Insurance Company Overall, tied for Best Budget Auto Insurance Company and won Best Auto Insurance for Young Drivers in the 2024 Bankrate Awards. Geico’s car insurance coverage options are somewhat limited, but there are more than a dozen discounts available. Geico has potential savings for military personnel, federal employees, good students, employers/groups, policy bundling, vehicle safety features, seatbelt use, defensive driver courses and more.

Travelers offers relatively low average rates for full and minimum coverage to drivers with good credit. Both auto and home insurance are available in most states, so there’s potential to take care of all your insurance needs with Travelers. Plus, you could potentially earn a discount for homeownership — even if you decide to purchase home insurance elsewhere. However, Travelers’ customer satisfaction ratings are below average in most regions where the company was ranked by J.D. Power, so it may be worth speaking with current customers to gauge whether the company is a good fit for you.

American Family is only available to drivers in 19 states; however, the company boasts lower-than-average car insurance rates and above-average customer satisfaction rankings in most of the regions it serves. It also ranked first in J.D. Power’s 2023 U.S. Insurance Digital Experience Study on shopping, meaning making the switch to AmFam online could be quite simple. Plus, car insurance customers may be able to secure home insurance coverage all in one place.

How credit affects your car insurance

Your credit history can influence your car insurance rates in many states. When applying for a policy, car insurance companies often review your credit report to assess your financial responsibility. Generally, a more favorable credit history is linked to lower car insurance premiums, while drivers with less favorable credit histories may face higher rates.

Insurance companies typically perceive drivers with less favorable credit as higher risk. This perception stems from a correlation between credit history and the likelihood of filing claims, making late payments or defaulting on premiums. To balance this risk, insurers may charge higher rates to these drivers. It's worth noting that significant changes in your credit history during your policy period might influence your rate at renewal.

When considering what constitutes a good credit history for obtaining competitive car insurance rates, insurers often look for a history that aligns with the “good” range of credit ratings — between 670 and 739, according to the FICO scoring model. This is generally considered to be the baseline for competitive pricing.

However, it’s important to clarify that insurers don't use your credit rating directly. Instead, they use a credit-based insurance score, which incorporates your credit history among other factors, to determine your rates.

The table below illustrates the difference in average annual full coverage premiums for the different credit tiers.

Poor credit Average credit Good credit Excellent credit
$4,801 $2,769 $2,542 $2,200
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Bankrate’s take: You may wonder, “Do car insurance quotes affect my credit rating?” The answer is no. Insurance quotes use soft credit pulls, which look into your credit history but do not affect your credit in the way that applying for a loan or mortgage does.

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Advertising disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Providers that don’t factor credit into your insurance rate

While most insurance providers consider your credit in determining car insurance rates, there are some carriers that may not factor in your credit history when you apply for a policy. This can be particularly beneficial for those seeking car insurance who are concerned about the impact of their credit on their premium. Here's a look at some insurance carriers that might not review your credit history as part of their policy application process:

  • CURE Insurance
  • Dillo Insurance
  • Equity Insurance

Note that these insurance providers may not be available in all states.

Further, in some states, it is against the law for insurance companies to use your credit rating to calculate your rate. Currently, insurance companies in California, Hawaii, Massachusetts and Michigan cannot use credit as a rating factor. But keep in mind that if you fail to make on-time payments, insurance companies in these states could still cancel your coverage.

What else impacts my insurance rate?

Your credit rating is only one factor that affects your car insurance premiums. Even if you have great credit, you might still pay an expensive rate based on other criteria. Here are some additional factors that could cause someone with good credit to have a high insurance rate:

  • Age: Your age is one of the biggest factors to impact your insurance premium. Younger drivers tend to pay some of the highest rates because they lack experience. As you get older, your insurance rate will typically decrease, assuming you maintain good credit and a clean driving history. (Hawaii and Massachusetts ban the use of age as a rating factor, though.)
  • Driving record: Drivers with a good credit rating but a lengthy history of insurance claims, at-fault accidents, tickets or DUI convictions are likely going to pay a higher rate. Maintaining a clean driving record can help you avoid expensive policy surcharges.
  • Where you live: California, Hawaii, Massachusetts and Michigan ban the use of credit as a rating factor. This means that in those states, your credit will not affect your car insurance premium. Additionally, each state has its own set of insurance laws and regulations, which can impact average premiums.
  • Coverage selections: The coverage selections and limits you choose are one of the biggest factors in your car insurance premium. Choosing higher limits and adding on optional coverage types like roadside assistance or rental reimbursement will generally result in higher premiums but will provide you with more financial protection.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2024 rates for 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 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 2022 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.

Credit-based insurance scores: 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

Ashlyn Brooks is a finance writer with more than half a decade of experience, known for her knowledge in areas such as taxes, insurance, investing, retirement, finance news, and banking products.

Edited by Editor, Insurance