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Compare car insurance with good credit

Score higher savings with a few money-saving methods for drivers with good credit scores.

Updated

You’ll enjoy the benefit of wide insurance options at cheap rates due to your good credit. But you can still look for ways to save on top of that.

What’s the best car insurance for good credit?

Good credit means you’ll have many companies who’d be delighted to fill your insurance needs. Choices to consider include:

  • Standard, credit-checked policy. While those with lower credit scores often opt for mileage-based insurance, you’ll likely benefit from standard insurance with discounts and optimum rates, especially if you have a few dings on your driving record.
  • Best value for coverage. Be sure to find the best when it comes to your preferred provider, coverage and pricing. Consider shopping around for a full drive-by of options.
  • Specialty insurance. Specialty insurers often provide great perks but exclude risky customers. You’ve got a good chance at qualifying because of your credit.

Best car insurance for good credit: Progressive

Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.

  • Broad coverage, including for custom car parts or ridesharing
  • Transparent pricing tools that help you buy within budget
  • Accident forgiveness on small claims or for staying claim-free
  • Stack a variety of discounts for multiple cars, autopay or homeownership

Cheapest car insurance for good credit

Name Product Roadside assistance New car protection Accident forgiveness Safe driver discount Available states
Progressive
Optional
30%
All 50 states
Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.
USAA
Optional
Yes
All 50 states
Affordable car insurance with highly rated customer service. Only available to military members and veterans and their family.
Allstate
13%
All 50 states
Your dedicated agent can help you find the best savings with multiple discounts and rewards programs.
EverQuote
EverQuote
Optional
Yes
All 50 states
Roll in a variety of car insurance quotes from top insurers despite a high-risk driving profile, and view possible discounts while you’re at it.
The AARP Auto Insurance Program from The Hartford
Optional
Yes
All 50 states & DC
Drivers over age 50 can enjoy low rates and perks designed for mature drivers, plus freebies and AARP member perks like free replacement cost coverage.
Liberty Mutual
Optional
30%
All 50 states
Earn free accident forgiveness after five years claims-free and customize your policy anytime online at the tap of a button.
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Compare up to 4 providers

How do I save on car insurance with good credit?

Companies may already cut you a better deal on your premium than drivers with poor or no credit. But you can still find other money-saving methods too.

  • Compare providers. Getting multiple quotes ensures you’re likely to get the best rate possible.
  • Maintain a safe driving record. In addition to your credit, how you drive and what you drive are the two biggest factors that determine your premium.
  • Stay claims-free. Consider paying for accident repairs without filing a damage claim if repair costs are less than the deductible. This could help you avoid premium surcharges.
  • Look for multiple discounts. You may qualify for several discounts, like safe driver rewards and insurance bundling.
  • Be smart about coverage. Keep coverage that offers needed protection, but consider dropping unnecessary coverage.
  • Raise deductibles. Raise the amount you pay for repairs upfront if the savings are worth the financial responsibility.

How much am I saving with good credit?

Making good credit even better can save you money on insurance in the long run. With good credit, you’ll likely pay around $1,300 per year, which is the average insurance rate.

By comparison, drivers with fair credit often pay 17% more, or $1,521 per year. Those with poor credit pay as much as $1,846 per year, which is $500 more than those with higher scores. However, if you raise your credit score, you might just achieve a premium that’s below $1,300.

Why are insurance rates based on credit?

Although using credit to determine insurance rates can be controversial, studies show that it’s an accurate indicator of a driver’s risk. Those who hold higher credit scores tend to make fewer accident claims.

Not all states allow credit-based insurance checks, including California, Hawaii and Massachusetts. Companies also use other demographic info like your driving record and the type of vehicle as determining factors as well.

How do I know if insurers are looking up my credit?

You’ll know insurers are looking up your credit score when they ask for permission to do so during the quoting process. Companies will request personal information to check the score, such as your address or Social Security number.

Must read: Will a credit check from an insurer affect my credit score?

Most insurance companies use a soft pull to check your credit, which means it’ll have no negative effect on your score. You’ll still see the insurance check on your personal credit history for recordkeeping purposes.

Bottom line

Good credit opens up many options for insurance providers so that you can choose from the best. Plus, improving your credit score could help you score an even lower premium.

Common questions about car insurance with good credit

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