What Is No Credit Check Auto Insurance?

Do all auto insurance companies check your credit?

Most insurers use credit checks to create a credit-based insurance score to help set your rate. Some insurers provide auto insurance with no credit check, which might seem appealing if you have a poor credit history. But purchasing car insurance from a company that doesn't check credit doesn't necessarily mean you'll pay a lesser rate than you will with a company that checks your credit.

Why do auto insurers check credit?

Your credit history factors into your credit-based insurance score, which insurance companies use to help predict the likelihood of a future accident or claim. Note that certain states have laws that don't allow the use of credit information as part of car insurance pricing.

Credit factors impacting credit-based insurance scores

Favorable credit information can increase your credit-based insurance score, and may include:

Long-established credit history
Numerous open accounts in good standing
No late payments or past due accounts
Low use of available credit

How else can I save on my car insurance if I have a poor credit history?

Even if your credit history is substandard, a customized car insurance quote from Progressive may include multiple car insurance discounts to help you save on your auto insurance, such as:

Multi-policy bundling: Bundle your homeowners insurance with auto insurance for savings
Paid in full: Pre-pay your six-month policy to earn this discount
Multi-car: More than one car can earn you a discount
Sign online: An e-signature on your documents