Which Auto Insurance Companies do not Check Credit?
Auto insurance companies who don’t check credit scores are classified under the types of insurance that they use in issuing insurance rates to the clients. The types of insurance are stated below;
Telematics-based InsuranceUsage-based Insurance
Most auto insurance companies check credit scores to reduce the risks on their end. They believe that a driver with a bad or low credit score is more liable to file insurance claims, which in turn would cost the insurance company money. So to cover up for these future claims, drivers with a bad or low credit score are charged higher than others to compensate for the auto insurance company’s financial risk. Currently, there are a few auto insurance companies, located in specific states of the US, that do not check a driver’s credit score before issuing insurance rates. The states which are putting this law to practice are;
MassachusettsCaliforniaWashingtonHawaiiMichigan
These states have made it a law for auto insurance companies located there to not check for credit scores, but there are other auto insurance companies located in other states who also do not check for credit scores.
Telematics-Based Insurance
This type of insurance, instead of issuing a fixed monthly rate on your car insurance, makes use of an app or a telematics device to track your driving habits, like your driving speed and how safe you drive. The safer your driving habits, the cheaper your insurance rate. If you practice safe driving and you are looking for car insurance that doesn’t check credit scores and a cost-effective one, this type of insurance is one you should consider. Below are a few auto insurance companies that practice this type of insurance and do not check credit scores;
Allstate DrivewiseProgressive SnapshotCUREUSAA
Allstate Drivewise
This is the fourth largest auto insurance company in the US. Their customers enjoy multiple discounts, bundling, and anti-theft services. They have coverage in all states and offer telematics-based insurance.
Progressive Snapshot
This is the third-largest auto insurance company in the US. Their clients enjoy the best services and they have received good ratings all around. This auto insurance company covers over fifty states in the US, including Canada.
Cure
This is a positive-rated auto insurance company that also does not check credit scores, but driving history. They cover the state’s New Jersey and Pennsylvania. They are also known for providing one of the cheapest car insurance services in the US. Their customers enjoy their various discounts and other attractive benefits as well.
USAA
This is the fifth-largest auto insurance company in the US. Unlike other insurance companies, this auto insurance company only covers car insurance for military members, their families, and veterans. They operate in the states of Texas, Arizona, New York, Florida, Colorado, Virginia, and Maryland. They also provide their clients with multiple discounts and they have received good ratings from their customers.
Usage-Based Insurance
This type of insurance does not focus on checking your credit score and unlike telematics-based insurance, it determines insurance rates using the distance covered when a customer drives and how often they use their vehicles. This type is insurance is more suitable for drivers who drive short distances or do not use their vehicles very often. The more often you use your vehicle and the more distance you cover, the higher your insurance rate. The insurance companies listed below practice this type of insurance;
State Farm Drive Safe and SaveSafeCo Right TrackMetro Mile
State Farm Drive Safe and Save
This auto insurance company works by using an app to track its client’s mileage when driving. The company covers several states in the US and has gathered some positive reviews about its services. If you keep driving safely while using the app, they assign discounts of up to thirty percent to you. They also cover several states in the US.
SafeCo Right Track
This insurance company is very similar to State Farms in its operations. They use an app to track their client’s driving mileage and usage, and also provide their customers with attractive discounts and bonuses.
Metro Mile
This insurance company determines its customer’s insurance rate exclusively by how many miles they cover. They are currently available in the following states; Illinois, Arizona, Washington, Pennsylvania, California, Oregon, Virginia, and New Jersey.
Despite the availability of car insurance services for people with poor credit scores, citizens should learn to keep and maintain a good credit score. Accumulation of bad credit is not good in any way and can amount to unnecessary debts.
Which is the best auto insurance company?
The best auto insurance company for you varies according to state and your personal preferences.
What does the average car insurance cost?
The average car insurance cost in the United States is $1,600 yearly and $149 monthly. The minimum car insurance cost is $550 yearly.
