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Car insurance rates by credit score

Updated May 01, 2025
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Powered by Coverage.com (NPN: 19966249)

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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.

Key takeaways

  • On average, drivers with poor credit pay 105 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 $7,670 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
$4,731 $2,943 $2,692 $2,308

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

Poor
$3,838
Average
$2,254
Good
$2,082
Excellent
$1,799
Poor
$4,312
Average
$2,722
Good
$2,516
Excellent
$2,198
Poor
$5,019
Average
$3,087
Good
$2,769
Excellent
$2,319
Poor
$4,762
Average
$2,688
Good
$2,426
Excellent
$2,100
Poor
$3,026
Average
$3,026
Good
$3,026
Excellent
$3,027
Poor
$6,462
Average
$3,553
Good
$3,235
Excellent
$2,545
Poor
$5,190
Average
$3,473
Good
$2,769
Excellent
$1,910
Poor
$5,055
Average
$3,214
Good
$2,953
Excellent
$2,451
Poor
$8,186
Average
$4,617
Good
$4,125
Excellent
$3,428
Poor
$5,531
Average
$3,174
Good
$2,889
Excellent
$2,465
Poor
$1,709
Average
$1,709
Good
$1,709
Excellent
$1,709
Poor
$2,201
Average
$1,569
Good
$1,481
Excellent
$1,323
Poor
$4,193
Average
$2,650
Good
$2,436
Excellent
$2,017
Poor
$3,454
Average
$1,945
Good
$1,756
Excellent
$1,426
Poor
$3,842
Average
$2,152
Good
$1,904
Excellent
$1,576
Poor
$5,459
Average
$2,792
Good
$2,522
Excellent
$2,065
Poor
$6,139
Average
$3,308
Good
$2,988
Excellent
$2,517
Poor
$6,956
Average
$4,456
Good
$4,002
Excellent
$3,273
Poor
$3,525
Average
$1,861
Good
$1,656
Excellent
$1,403
Poor
$5,504
Average
$3,236
Good
$2,931
Excellent
$2,517
Poor
$2,061
Average
$2,061
Good
$2,061
Excellent
$2,061
Poor
$5,770
Average
$3,470
Good
$3,100
Excellent
$2,377
Poor
$6,141
Average
$2,979
Good
$2,619
Excellent
$2,206
Poor
$4,728
Average
$2,528
Good
$2,298
Excellent
$1,955
Poor
$4,775
Average
$2,767
Good
$2,562
Excellent
$2,075
Poor
$4,664
Average
$2,572
Good
$2,389
Excellent
$2,031
Poor
$5,274
Average
$2,748
Good
$2,438
Excellent
$1,982
Poor
$5,683
Average
$3,865
Good
$3,575
Excellent
$3,016
Poor
$3,809
Average
$1,973
Good
$1,745
Excellent
$1,365
Poor
$6,378
Average
$3,413
Good
$2,992
Excellent
$2,258
Poor
$4,231
Average
$2,387
Good
$2,190
Excellent
$1,859
Poor
$7,670
Average
$4,557
Good
$4,095
Excellent
$3,397
Poor
$2,750
Average
$2,082
Good
$1,955
Excellent
$1,873
Poor
$4,159
Average
$2,097
Good
$1,819
Excellent
$1,463
Poor
$3,194
Average
$1,941
Good
$1,792
Excellent
$1,452
Poor
$5,027
Average
$3,007
Good
$2,749
Excellent
$2,351
Poor
$4,111
Average
$2,420
Good
$2,218
Excellent
$1,935
Poor
$4,821
Average
$2,709
Good
$2,447
Excellent
$1,984
Poor
$5,420
Average
$3,402
Good
$2,997
Excellent
$2,589
Poor
$4,061
Average
$2,193
Good
$1,984
Excellent
$1,592
Poor
$5,707
Average
$2,659
Good
$2,320
Excellent
$1,825
Poor
$4,420
Average
$2,323
Good
$2,016
Excellent
$1,621
Poor
$6,316
Average
$3,066
Good
$2,608
Excellent
$2,212
Poor
$3,926
Average
$2,328
Good
$2,136
Excellent
$1,774
Poor
$2,767
Average
$1,642
Good
$1,514
Excellent
$1,327
Poor
$4,353
Average
$2,408
Good
$2,162
Excellent
$1,715
Poor
$2,831
Average
$2,070
Good
$1,910
Excellent
$1,654
Poor
$4,772
Average
$2,494
Good
$2,211
Excellent
$1,745
Poor
$3,406
Average
$2,110
Good
$1,929
Excellent
$1,657
Poor
$2,883
Average
$1,883
Good
$1,759
Excellent
$1,473
Poor
$4,281
Average
$3,316
Good
$2,834
Excellent
$2,354
Poor
$1,709
Average
$1,709
Good
$1,709
Excellent
$1,709
Poor
$2,201
Average
$1,569
Good
$1,481
Excellent
$1,323
Poor
$4,193
Average
$2,650
Good
$2,436
Excellent
$2,017
Poor
$3,454
Average
$1,945
Good
$1,756
Excellent
$1,426
Poor
$3,842
Average
$2,152
Good
$1,904
Excellent
$1,576
Poor
$5,459
Average
$2,792
Good
$2,522
Excellent
$2,065
Poor
$6,139
Average
$3,308
Good
$2,988
Excellent
$2,517
Poor
$6,956
Average
$4,456
Good
$4,002
Excellent
$3,273
Poor
$3,525
Average
$1,861
Good
$1,656
Excellent
$1,403
Poor
$5,504
Average
$3,236
Good
$2,931
Excellent
$2,517
Poor
$2,061
Average
$2,061
Good
$2,061
Excellent
$2,061
Poor
$5,770
Average
$3,470
Good
$3,100
Excellent
$2,377
Poor
$6,141
Average
$2,979
Good
$2,619
Excellent
$2,206
Poor
$4,728
Average
$2,528
Good
$2,298
Excellent
$1,955
Poor
$4,775
Average
$2,767
Good
$2,562
Excellent
$2,075
Poor
$4,664
Average
$2,572
Good
$2,389
Excellent
$2,031
Poor
$5,274
Average
$2,748
Good
$2,438
Excellent
$1,982
Poor
$5,683
Average
$3,865
Good
$3,575
Excellent
$3,016
Poor
$3,809
Average
$1,973
Good
$1,745
Excellent
$1,365
Poor
$6,378
Average
$3,413
Good
$2,992
Excellent
$2,258
Poor
$4,231
Average
$2,387
Good
$2,190
Excellent
$1,859
Poor
$7,670
Average
$4,557
Good
$4,095
Excellent
$3,397
Poor
$2,750
Average
$2,082
Good
$1,955
Excellent
$1,873
Poor
$4,159
Average
$2,097
Good
$1,819
Excellent
$1,463
Poor
$3,194
Average
$1,941
Good
$1,792
Excellent
$1,452
Poor
$5,027
Average
$3,007
Good
$2,749
Excellent
$2,351
Poor
$4,111
Average
$2,420
Good
$2,218
Excellent
$1,935
Poor
$4,821
Average
$2,709
Good
$2,447
Excellent
$1,984
Poor
$5,420
Average
$3,402
Good
$2,997
Excellent
$2,589
Poor
$4,061
Average
$2,193
Good
$1,984
Excellent
$1,592
Poor
$5,707
Average
$2,659
Good
$2,320
Excellent
$1,825
Poor
$4,420
Average
$2,323
Good
$2,016
Excellent
$1,621
Poor
$6,316
Average
$3,066
Good
$2,608
Excellent
$2,212
Poor
$3,926
Average
$2,328
Good
$2,136
Excellent
$1,774
Poor
$2,767
Average
$1,642
Good
$1,514
Excellent
$1,327
Poor
$4,353
Average
$2,408
Good
$2,162
Excellent
$1,715
Poor
$2,831
Average
$2,070
Good
$1,910
Excellent
$1,654
Poor
$4,772
Average
$2,494
Good
$2,211
Excellent
$1,745
Poor
$3,406
Average
$2,110
Good
$1,929
Excellent
$1,657
Poor
$2,883
Average
$1,883
Good
$1,759
Excellent
$1,473
Poor
$4,281
Average
$3,316
Good
$2,834
Excellent
$2,354
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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.

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

Methodology

Bankrate utilizes Quadrant Information Services to analyze May 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.

Written by
Ashlyn Brooks
Writer II, Insurance
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
Reviewed by Director of corporate communications, Insurance Information Institute