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Four insurance companies do not use credit scores when setting car insurance rates in 2026: CURE, Dillo, Root, and Lemonade. CURE never checks credit in New Jersey, Pennsylvania, and Michigan. Dillo never checks credit in Texas. Root has been removing credit from its pricing through 2025 and operates in most states. Lemonade runs only soft credit checks, which do not affect your score, in eight states. If you live in California, Hawaii, Massachusetts, or Michigan, the question is moot, because state law bans every insurer from using credit to set auto rates, so all four of those states give you the whole market to shop.
Credit based insurance scores are one of the biggest rating factors in car insurance, and the price gap is large. MoneyGeek’s 2026 analysis found GEICO charging poor credit drivers $212 a month while State Farm charged $590 a month for the same driver, the same coverage, and the same credit score. That gap is why drivers with bad credit search for companies that skip the check entirely. This guide names the companies that do, explains the four states where no company can check, and shows how to get the best rate when your credit works against you.
Which insurance companies do not use credit scores?
Four insurance companies do not use credit scores to set car insurance rates: CURE, Dillo, Root, and Lemonade. CURE, which stands for Citizens United Reciprocal Exchange, is a nonprofit carrier that bases rates on driving records, not credit, occupation, or education, and it operates in New Jersey, Pennsylvania, and Michigan. Dillo Insurance writes policies in Texas for drivers with tickets, accidents, lapses, or no prior coverage, without checking credit. Root has been decreasing the weight of credit scores through 2025 and eliminating them entirely, and it prices mainly on how you drive through its mobile app. Lemonade runs soft credit checks only, which appear on your report but do not lower your score, and it operates in Arizona, Illinois, Nevada, Ohio, Oregon, Tennessee, Texas, and New Jersey.
| Company | States available | Credit check policy | Best for |
|---|---|---|---|
| CURE | New Jersey, Pennsylvania, Michigan | Never checks credit, occupation, or education | Clean driving record with bad credit |
| Dillo | Texas only | Never checks credit | High risk drivers, drivers who need an SR-22 |
| Root | Most states | Eliminated credit from pricing by late 2025 | Safe drivers who use a phone app |
| Lemonade | Arizona, Illinois, Nevada, Ohio, Oregon, Tennessee, Texas, New Jersey | Soft check only, does not affect your score | Low mileage drivers |
| Empower | Texas only | Some policies do not use credit | Texas drivers shopping outside the big carriers |
The honest limit is availability. None of these four companies operates nationwide, so most drivers cannot buy from them. GEICO, State Farm, Progressive, Allstate, Nationwide, Travelers, Farmers, Liberty Mutual, American Family, and Auto-Owners all check credit scores in the 46 states where it is legal, according to MoneyGeek. That means the practical answer for most drivers with bad credit is not a no credit company, but the big carrier that penalizes bad credit the least, plus the state rules below. MoneyGeek’s guide to insurers that skip credit checks lists the same four companies and the states where each one operates.
Which states ban credit scores in car insurance?
Four states ban insurance companies from using credit scores to set car insurance rates: California, Hawaii, Massachusetts, and Michigan. If you live in one of these states, every insurer automatically skips credit checks when you quote, and your credit cannot affect your rate at all. California banned the practice in 1988 under Proposition 103. Hawaii and Massachusetts followed to prevent discrimination against low income residents. Michigan eliminated credit scoring in 2020 as part of its no fault insurance reform.
| State | Rule for auto insurance | Rule for homeowners insurance |
|---|---|---|
| California | Full ban, no credit in underwriting or rating | Full ban |
| Hawaii | Full ban on credit in underwriting and rating | Credit can affect homeowners rates |
| Massachusetts | Full ban on credit in underwriting, rating, and renewal | Full ban |
| Michigan | Credit score itself cannot be used to deny, cancel, or refuse renewal | Credit score itself cannot be used to deny, cancel, or refuse renewal |
| Maryland | Credit can be used at purchase, but not to raise rates at renewal | Full ban on using credit history for rates or renewal |
| Oregon | Credit can be used at purchase, but not to change rates at renewal | Similar renewal protection |
| Utah | Credit can be used at underwriting, but it cannot raise your rate, only earn a discount | Varies |
| Nevada | Restricted use, with limits on how credit affects pricing | Varies |
Seven states forbid or restrict credit based insurance scores for home and auto insurance, according to Experian, and the table above covers the main ones. Michigan has a nuance worth knowing: the state bars the credit score itself, but not insurance scores built from credit data, according to Credit Karma’s 2026 guide. Washington has no ban in place today, so insurers there can use credit freely. Every other state allows insurers to use your credit score both when you first buy a policy and when it renews.
If you live in one of the four ban states, shop on driving record instead of credit. Compare GEICO, State Farm, Progressive, and Allstate on price and service, since your credit will not matter at any of them. Our guide to whether your credit score affects car insurance explains the state rules in detail, and our guide to credit based insurance scores explains how the score itself is built.
How much does bad credit raise car insurance?
Bad credit raises car insurance a lot, and the size of the increase depends heavily on the carrier. MoneyGeek’s 2026 analysis found the same driver with the same coverage and the same poor credit score quoted $212 a month at GEICO and $590 a month at State Farm, a gap of $378 a month, or $4,536 a year, between two major carriers. The credit penalty is not a fixed surcharge. Each carrier weighs credit differently, so the cheapest carrier for a driver with good credit is often not the cheapest for a driver with poor credit.
The penalty also varies by state. In states that allow credit scoring, a driver with poor credit can pay roughly double what a driver with excellent credit pays for the same coverage, and in some states the gap is larger. In the four ban states, the penalty is zero by law. That is why the first question for a driver with bad credit is not which carrier to pick, but which state rules apply, since the answer changes the whole shopping strategy.
Usage based insurance is the workaround most drivers can actually use. Programs such as GEICO DriveEasy, Allstate Drivewise, and Nationwide SmartRide price on how you drive rather than on your credit file, and safe driving can offset much of the credit penalty over a few months. Pay per mile programs go further: Nationwide SmartMiles is available in 44 states and Washington DC without a credit check, and Allstate Milewise offers no credit check policies in its mileage based plans. Liberty Mutual’s ByMile program works the same way. These programs suit low mileage drivers best, since the price is tied to miles driven.
How do you get cheap car insurance with bad credit?
Cheap car insurance with bad credit starts with quoting widely, because the carrier spread is the largest of any rating factor. Get quotes from GEICO, Progressive, and Nationwide first, since they tend to penalize poor credit less than State Farm or Allstate in MoneyGeek’s 2026 data, then add any no credit company that operates in your state. CURE is the first call in New Jersey, Pennsylvania, or Michigan. Dillo and Empower are the first calls in Texas. Root and Lemonade are worth a quote wherever they operate, since their pricing ignores credit entirely or nearly so.
Four more moves help. First, enroll in a usage based program and drive carefully for a few months, since the telematics discount can be large. Second, raise your deductible to $1,000 if you can pay it after a crash, which cuts the premium whatever your credit score. Third, buy only the coverage you need: if your car is old and paid off, dropping collision and comprehensive can cut the bill in half, though it leaves the car unprotected. Fourth, improve your credit score over time, since insurers recheck it at renewal in most states, and a better score lowers the rate. Our guide to how improving your credit score can lower your car insurance premium covers the steps that move the score fastest.
One more check: make sure the carrier actually ran your credit before you accept the quote. Some online quotes show a price before the credit check, and the final price can jump after it. Ask the agent whether the quote reflects your credit file, and get the final price in writing before you cancel your old policy. A quote that changes after the credit pull is not a bait and switch, it is how the process works, but you should know the real number before you switch.
Do insurers check credit for home insurance too?
Yes, insurers check credit for home insurance in most states, and the same state rules apply with a few differences. California and Massachusetts ban credit in homeowners pricing as well as auto. Hawaii bans it for auto but allows it for homeowners. Maryland bans homeowners insurers from refusing coverage, cancelling, refusing to renew, or basing rates on credit history. Our guide to California minimum car insurance requirements covers the California rules, where credit cannot affect either policy.
The home insurance credit penalty is usually smaller than the auto penalty, but it is still real, and the same shopping advice applies: quote widely, since carriers weigh credit differently, and check whether a no credit option exists in your state. Renters insurance is cheaper and less sensitive to credit, so it is rarely a problem even for drivers with poor credit.
Key takeaways
CURE, Dillo, Root, and Lemonade are the four companies that do not use credit scores to set car insurance rates, but none of them operates nationwide, so most drivers cannot buy from them. California, Hawaii, Massachusetts, and Michigan ban every insurer from using credit for auto rates, so drivers there can shop the whole market on driving record alone. Everywhere else, the credit penalty varies hugely by carrier, with MoneyGeek finding a $378 a month gap between GEICO and State Farm for the same poor credit driver. Usage based insurance and pay per mile programs are the most practical workaround, and quoting at least four carriers is the fastest way to find the one that penalizes your credit least.
Frequently asked questions
Which car insurance companies do not check credit scores?
CURE, Dillo, Root, and Lemonade do not use credit scores to set car insurance rates. CURE operates in New Jersey, Pennsylvania, and Michigan. Dillo operates in Texas only. Root operates in most states and has eliminated credit from its pricing. Lemonade runs soft checks only in eight states. Empower in Texas also offers some policies without a credit check.
What states do not allow credit scores for car insurance?
California, Hawaii, Massachusetts, and Michigan ban insurers from using credit scores to set auto insurance rates. California banned the practice in 1988 under Proposition 103, and Michigan eliminated credit scoring in 2020. Maryland, Oregon, Utah, and Nevada restrict how credit can be used, such as banning rate increases at renewal based on credit.
Does GEICO check your credit score for car insurance?
Yes, GEICO checks your credit score in the states where it is legal, but it penalizes poor credit less than most large carriers. MoneyGeek’s 2026 analysis found GEICO charging poor credit drivers $212 a month against State Farm’s $590 a month for the same driver and coverage. GEICO’s DriveEasy telematics program can also lower the rate based on how you drive.
Can you get car insurance with bad credit?
Yes, you can get car insurance with bad credit in every state, and in most states an insurer cannot use your credit as the only reason to turn you down. Your credit can still raise what you pay, sometimes doubling the premium. The cheapest path is to quote widely, try a no credit company if one operates in your state, and enroll in a usage based program.
Does a credit check for car insurance hurt your credit score?
No, a credit check for car insurance does not hurt your credit score. Insurers run a soft inquiry for rating, which does not affect your score. Lemonade runs soft checks only, and the other no credit companies run no check at all. Shopping for quotes will not lower your score.
How can I lower my car insurance if I have bad credit?
Quote at least four carriers, since the credit penalty varies hugely between them. Enroll in a usage based program such as GEICO DriveEasy, Allstate Drivewise, or Nationwide SmartRide, which prices on driving rather than credit. Raise your deductible to $1,000, drop collision and comprehensive on an old paid off car, and improve your credit score over time, since insurers recheck it at renewal.
