In 2025, credit scores remain a major factor in determining auto insurance rates in most U.S. states. Insurers typically use a specialized "credit-based insurance score"—not your standard FICO score—to help set premiums, with the logic that credit history statistically correlates with claim risk137.

• Drivers with poor credit pay 61%–76% more for auto insurance than those with good credit, and in some cases, more than double the rate126.

• For example, in Oklahoma, drivers with poor credit pay close to $5,000 per year for full coverage, while those with good credit pay around $2,2002.

• The dollar impact can be dramatic: a poor-credit driver might pay $1,500 or more per year above what a similar driver with excellent credit pays16.

• Even moving from "poor" to "average" credit (e.g., from a score of 400 to 580) can result in substantial savings2.

• Studies show a strong link between credit behavior and insurance risk; drivers with lower credit scores are statistically more likely to file claims17.

• Over 92% of major insurers use credit-based scores where allowed, believing it leads to more accurate and fair pricing13.

• California, Hawaii, Massachusetts, and Michigan ban the use of credit scores for auto insurance pricing134.

• Some states have partial restrictions (e.g., Maryland, Oregon, Utah), but in most states, credit remains a key rating factor14.

•  670–740

•  Around 580

• Improving from poor to average can have a significant effect on premiums2.

•  Payment history is a major factor.

•  Lower utilization improves your score.

•  Use tools to track and manage your credit health12.

•  Insurers weigh credit differently, so comparing quotes is essential.

•  If you live in a state that bans or restricts credit use, your premium won’t be affected by your score134.

•  Good credit can qualify you for additional savings38.

A poor credit score can increase your auto insurance premium by 60%–100% or more in most states, sometimes costing more than a major driving violation. Improving your credit score—even modestly—can lead to substantial savings. Always compare rates and know your state’s regulations regarding credit use in insurance pricing