Your credit score remains a major factor in determining your auto insurance quote in 2025, with significant financial consequences for drivers in most states.

• Drivers with poor credit pay, on average, 76% to 104% more for car insurance than those with good or excellent credit.

  • For example, in Oklahoma, drivers with poor credit pay close to $5,000 annually for full coverage, while those with good credit pay around $2,200.

  • Nationally, moving from bad to good credit can reduce monthly premiums from $341 to $175.

• Excellent credit can yield savings of 18% or more on full coverage policies.

• Insurers use a credit-based insurance score (different from a standard credit score), which incorporates your credit history to predict the likelihood of filing claims.

• Statistically, drivers with lower credit scores are more likely to file claims, leading insurers to charge them higher premiums.

• Factors influencing your insurance score include outstanding debt, payment history, credit utilization, bankruptcies, and new credit applications.

• California, Hawaii, Massachusetts, and Michigan have banned the use of credit scores for auto insurance pricing.

• In most other states, insurers are allowed to use credit-based scores, though some have restrictions on how scores can be used.

• Raising your credit score—even from “poor” (300–400) to “average” (around 580)—can significantly lower your insurance costs.

• Key steps: pay bills on time and reduce credit card balances, as credit utilization is a major factor.

• A poor credit score can more than double your auto insurance premium in most states.

• Improving your credit is one of the most effective ways to lower your car insurance costs—sometimes even more impactful than improving your driving record.

•  In a handful of states, your credit score will not affect your rate at all.

Your credit score is a powerful lever for your auto insurance quote in 2025, except in states where its use is banned. Maintaining good credit can save you hundreds or even thousands of dollars per year on your policy.