Car Insurance Cost by Credit Score
In the 46 states where credit is a legal auto-rating factor, a poor credit-based insurance score can roughly double your full-coverage premium relative to an exceptional score. Nationally the full-coverage benchmark for poor credit runs near $4,000 per year vs about $2,000 for exceptional credit on an otherwise identical profile. The four states that prohibit credit are California, Hawaii, Massachusetts, and Michigan. For the shopper-side ranking of carriers that de-emphasize credit, see our best for bad credit shortlist.
Average annual full-coverage by credit-score tier
| Tier | FICO-equivalent range | Typical annual (full coverage) |
|---|---|---|
| Exceptional | 800+ | ~$2,000 |
| Very Good | 740-799 | ~$2,200 |
| Good | 670-739 | ~$2,500 |
| Fair | 580-669 | ~$3,100 |
| Poor | Below 580 | ~$4,000 |
National anchor benchmarks from MoneyGeek and Insurance.com 2026. State-level dispersion is substantial. Insurance credit scores are not identical to FICO; see methodology note below.
Credit-based insurance scores vs FICO
A credit-based insurance score (CBIS) is a related but not identical model, generated by LexisNexis or TransUnion from the same underlying credit file but weighted differently. CBIS emphasizes payment history and credit utilization and discounts recent inquiries less than FICO. A driver can have a 720 FICO and a lower insurance tier at the same time (or vice versa). Carriers do not disclose their exact weighting; the National Association of Insurance Commissioners (NAIC) publishes general factors but not formulas.
The four exception states
- California: Proposition 103 restricts auto insurance to three mandatory factors (driving safety record, miles driven, years of driving experience). Credit is prohibited.
- Hawaii: state statute prohibits credit as an auto-insurance rating factor.
- Massachusetts: credit cannot be used.
- Michigan: credit cannot be used (2019 reform).
Reducing the credit-related premium
- Shop carriers that de-emphasize credit (see best for bad credit).
- Bundle auto + homeowners/renters. Household bundle discount of 10 to 25 percent partially offsets the credit surcharge.
- Request a credit re-rate after a material score improvement (payoff, chargeoff drop). Mid-term re-rates vary by carrier.
Related reading
Sources
- MoneyGeek: Car insurance by credit score 2026.
- Insurance.com: Credit-based insurance score benchmarks.
- NAIC: Credit-based insurance scores and the use thereof in insurance pricing.
- California Prop 103; HI, MA, MI insurance code (credit prohibition).