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.
Explore Progressive Answers' auto editorial guidelines to find out why you can trust the car insurance information you find here.
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
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