Best Car Insurance for Drivers with Excellent Credit

Why Credit Matters in Car Insurance Pricing

Insurance companies use a version of your credit history called a credit-based insurance score to help predict the likelihood of filing a claim. Studies have consistently shown that drivers with better credit are less risky to insure, and as a result:

Excellent credit can save you hundreds or even thousands in annual premiums.

According to industry research, here’s how average premiums break down:

Drivers with lower credit scores tend to pay higher insurance premiums. Those with poor credit (below 580) pay an average of $2,400 per year, while drivers with fair credit (580–669) pay about $2,000. Premiums drop to $1,700 for those with good credit (670–739) and $1,500 for very good credit (740–799). Drivers with excellent credit (800–850) enjoy the lowest average annual premium at $1,350.

Source: ValuePenguin, NerdWallet data analysis

State-by-State Credit Usage Rules

Not every state allows insurers to factor credit scores into pricing. Here’s a breakdown:

• ❌ Prohibited: California, Hawaii, Massachusetts, Michigan
• ⚠️ Restricted/Regulated: Washington, Maryland, Oregon
• ✅ Permitted: Most other states

This means excellent credit is most beneficial in states where it's used as a rating factor. Always check your state's insurance commissioner site.

What Makes Drivers with Excellent Credit So Attractive to Insurers?

Carriers actively seek out excellent-credit consumers because:

• Lower claim risk: Fewer claims historically tied to better credit profiles
• More likely to bundle: Strong-credit users often own homes or other vehicles, which creates upsell opportunities
• Loyalty & retention: These customers are more likely to renew policies over time
• Digital readiness: Excellent-credit users tend to adopt digital policy management tools, reducing carrier overhead

Carrier Spotlight: Progressive

Progressive is one of the most competitive insurers for drivers with excellent credit. According to their public filings and industry analysis:

• Excellent-credit drivers see average savings of $500+ per year over fair-credit counterparts
• Progressive often unlocks access to perks like:
  • Snapshot discounts (for safe, low-mileage drivers)
  • Loyalty Rewards for long-term policyholders
  • Name Your Price Tool that works best when quoting high-credit profiles

InsuranceBest partners directly with Progressive to ensure drivers with excellent credit are matched with these tailored offers quickly, transparently, and without spam.

How to Leverage Your Credit Score When Shopping

Here's how you can maximize your credit standing to get the best possible car insurance:

1. Shop Multiple Carriers — But Let Tech Do It

You don't have to spend hours filling out quotes. Platforms like InsuranceBest use AI to instantly match you with top-tier carriers that reward excellent credit.

2. Request Policy Tiering Options

Top carriers may offer different levels of coverage perks, such as enhanced rental reimbursement, accident forgiveness, or new car replacement, especially to excellent-credit applicants.

3. Bundle and Save

Carriers love bundlers. If you have homeowners, renters, or umbrella insurance, combining them can unlock additional savings.

4. Go for Higher Coverage Limits

With excellent credit, you can often access premium coverage limits for less than someone with fair credit pays for basic coverage. It's the smart play: more protection, lower cost.

Bonus: How to Improve Your Credit (If You're Not There Yet)

Even if your credit isn't excellent yet, a few strategic actions can boost your score and reduce your premium:

• Pay bills on time – Payment history is the #1 scoring factor
• Reduce credit utilization – Keep balances below 30% of available credit
• Don't open unnecessary accounts – Too many inquiries can hurt
• Review your credit report – Correct any errors that may lower your score

Improving from "Fair" to "Very Good" could save you $500+ per year.

Mythbusting: Common Credit Misconceptions

There are several common myths about credit and insurance. Shopping for insurance does not lower your credit score, because insurers only use soft credit pulls. Insurance companies also do not see your FICO score; instead, they use a separate credit-based insurance score. While paying bills on time can help, other factors like credit mix, the length of your credit history, and your credit usage also influence your insurance rates.

Future Trends: AI and Credit-Based Personalization

Modern insurance tech is changing fast. With the rise of AI and behavioral underwriting, your credit score is just one signal in a much larger ecosystem. Platforms like InsuranceBest analyze dozens of data points — including credit, location, vehicle type, and even real-time driving habits — to deliver precision matches.

Expect more carriers to shift toward this model, where excellent credit amplifies the effects of:

• Safe driving
• Low mileage
• Continuous insurance coverage

Why Choose InsuranceBest?

At InsuranceBest, we specialize in helping consumers with excellent credit get access to premium-level policies at the lowest available rates. Our AI-powered platform instantly matches your profile with carriers that are actively looking to insure drivers like you.

• ✅ Get quotes in seconds
• ✅ No spam, no pushy sales calls
• ✅ Transparent recommendations built for your life

We’ve helped over 3 million Americans find better coverage, and now we’re here to help you.

InsuranceBest: Best Coverage at the Best Price

Frequently Asked Questions (FAQs)

1. Why does excellent credit lower car insurance rates?

Insurers use credit-based insurance scores to help predict risk. Statistically, drivers with excellent credit file fewer claims, so they’re often rewarded with lower premiums.

2. Which insurers are best for drivers with excellent credit?

While many carriers offer good rates, companies like Progressive, GEICO, and State Farm are known to offer highly competitive pricing for top credit tiers.

3. Are there states where credit can’t be used to set my rate?

Yes. Some states, like California, Hawaii, and Massachusetts, restrict or ban the use of credit scores in insurance pricing. Always check local regulations.

4. Can my rate change if my credit drops?

Absolutely. If your credit score drops significantly, your insurer may raise your rate at renewal — unless you’re in a state where credit use is prohibited.

5. Does bundling help even more if I have excellent credit?

Yes. Excellent credit makes you eligible for the best bundling discounts, especially when combining auto and home policies with the same provider.

About the Author

This article was written by Jordan Blake, Senior Insurance Editor at InsuranceBest. With more than ten years of experience covering auto insurance and consumer finance, Jordan helps drivers understand how credit, coverage levels, and insurer selection all impact long-term savings.

Jordan believes great credit deserves great coverage, and his goal is to help you unlock both.