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Compare car insurance for drivers with no credit history

If you live outside of California, Hawaii or Massachusetts, your credit affects coverage.

You can still get car insurance without a credit score and even find savings using several methods. However, you may pay as much as 67% more than drivers with stronger credit.

What’s the best car insurance for drivers with no credit?

You won’t always qualify for affordable car insurance coverage if you have no credit. These types of coverage could be your best bet:

Usage-based car insurance

Mileage-based insurance uses your driving, not demographics, to decide your insurance rates. Instead of using traditional factors that can’t be helped like age and gender, usage-based insurance focuses more on how well and how often you drive.

These pay-as-you-go insurance policies allow you to track your mileage and driving habits to help determine how much you’ll pay. To get your insurance rates, you’ll install a telematics device, either a physical device or an app, that tracks how safely and how much you drive.

If you drive infrequently and don’t have a history of accidents or traffic violations, you could save with a usage-based policy. However, this method may backfire if you tend to be a risky driver or have a long commute — insurance companies can increase your rates after your initial quote.

Car insurance with no credit checks

Some companies maintain that they won’t use credit to determine rates. Others welcome low- or no-credit drivers. However, an insurer that doesn’t check credit may charge more overall than its competitors.

Legislation in California, Hawaii and Massachusetts prohibit insurers from factoring in credit to determine rates.

If you drive often and have been denied coverage because of your credit, a no-credit-check company could help you get insurance. But be ready to pay more.

Co-owner car insurance

To keep premiums low, consider adding a co-owner with good or excellent credit and a clean driving record. This person must partially own the vehicle named on the policy.

If you have family or close friends willing to share their car with you, co-owner insurance could give you a lower rate and better coverage. But this should be temporary if you’re working towards financial independence and building credit.

Best mileage-based insurance: Gabi

Upload your current policy info and get quotes from 40+ companies. Switch and save an average of $961 a year.

  • Compare up to 40 quotes in 2 minutes
  • Lower premiums with multi-policy bundling
  • Get in touch by chat or personal adviser, unusual for a broker
  • Manage policies through your Gabi account

Cheapest car insurance for drivers with no credit history

Name Product Roadside assistance New car protection Accident forgiveness Safe driver discount Available states
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.
The AARP Auto Insurance Program from The Hartford
All 50 states
Enjoy low rates for mature drivers, plus perks like new car replacement and lifetime repair guarantees. Only for drivers over age 50.
All 50 states
Affordable car insurance with highly rated customer service. Only available to military members and veterans and their family.
All states & DC
Enter your current policy and get quotes in 30-seconds from 100+ companies, then get help to switch insurers for free. Requires online login to your existing insurance.
Available in 30 states
Track your driving to receive a low rate that reflects your driving skills, and enjoy a fully app-based policy experience.
All 50 states
Upload your current policy info and get quotes from 40+ companies. Switch and save an average of $961 a year.

Compare up to 4 providers

How can I save on car insurance with no credit?

When purchasing car insurance with no credit, you might need to think outside the box to get the best rate.

  • Build credit. Learn about how to build your credit and work toward getting that number to 670 or higher.
  • Maintain a clean driving record. A clean record proves you’re a responsible driver, even without a credit score to back you up.
  • Get every discount possible. Find helpful savings such as discounts for completing a safe driving course, student discounts and making on-time payments. These also prove that you’re responsible and decrease the risk for your insurer.
  • Lower coverage. Strip away additional coverage you might not need, such as better car replacement or original manufacturer parts coverage.
  • Raise the deductible. You’ll pay more if you’re in an accident, but raising your deductible can lower your premium.
  • Keep the policy in someone else’s name. Though not all states or companies allow this, being added under another policy holder could lower your rates.

How much can I save if I start building credit?

If you have car insurance without a credit score, you could be paying over 50% more than those with strong credit. Since the average cost of insurance is around $1,300 per year, that brings the cost for those with no credit above $1,950.

However, even small increases in your credit score could help you save significantly on your premium. Improving your credit score by just 100 points could save up to $1,000 a year.

Car insurance cost by credit score


Why do insurance companies consider my credit?

Insurance companies use credit to get a full picture of your accident risk and financial responsibility. While this practice is controversial for some people, studies show that drivers with higher credit scores have fewer accidents.

However, insurance companies also factor in your driving record, age and location as part of the process. If you don’t have credit but still have a clean driving record, you may get rewarded for your safe driving.

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

The insurer should ask for permission to check your score during the quoting process. When you get started, the company asks for personal information like your address, Social Security number or vehicle ID.

These credit checks use a soft pull, meaning they won’t affect your credit score.

Bottom line

You can get car insurance if you have no credit by applying to companies who don’t check credit scores, finding a co-owner or applying for usage-based insurance. However, you may pay 25% to 67% more.

Compare your options for the best car insurance provider for your situation.

Common questions about no-credit car insurance

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