How to Get a Good Credit Discount

A good credit discount is typically applied to people with credit scores of 680 or above. Your credit score reflects how responsible a borrower you are, so auto insurance companies typically offer a good credit discount. You can save up to $100 a month with a good credit auto insurance discount, although discounts vary from company to company.

Free Auto Insurance Comparison

 Secured with SHA-256 Encryption

Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

Full Bio →

Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

Full Bio →

Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jun 21, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to Remember

  • Your credit score reflects how responsible a borrower you are
  • You’ll typically need a credit score of 680 or above to qualify for a good credit auto insurance discount
  • Those with good credit can save up to $100 a month on their auto insurance rate

Your credit score affects you in many different ways. Not only does good credit make it easier for you to get approved for a loan, but it can also lead to a good credit discount on your auto insurance.

When searching for cheap auto insurance rates, it’s important to research every potential discount insurance providers offer. Some companies are better for those with good credit, while others are better for those with poor credit.

Keep reading below to learn what a credit score is, how to get a good credit discount, and how much you can save. First, enter your ZIP code into our free comparison tool above to find affordable auto insurance near you.

What is a credit score?

Many different factors affect auto insurance rates. One of the biggest factors is your credit score. But what exactly is a credit score? Does good credit lower car insurance?

According to the Consumer Financial Protection Bureau, “a credit score predicts how likely you are to pay back a loan on time.” However, this also translates into a gauge of how financially responsible you are.

People with higher credit scores are considered more likely to pay back their loans and make payments on time. Auto insurance companies recognize this and because they trust you to make your payments, they’ll offer you a good credit discount.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

How do I get a good credit auto insurance discount?

When wondering how to get discounts on auto insurance, it’s important to understand that many insurance companies will let you know about discounts you qualify for before you even sign up.

If you have a good credit score (680 or above), auto insurance companies will offer you discounted rates. These good credit discounts will vary from company to company, so it’s important to compare auto insurance quotes from multiple companies before you buy.

For example, auto insurance rates from one company may come with a larger good credit discount but still end up being more expensive month to month. This is why it’s important to compare auto insurance rates.

How much can I save with a good credit auto insurance discount?

So how much can a good credit discount save you on your rate? Well, drivers with good credit can save as much as $100 a month on their auto insurance rate just by maintaining a good credit score.

For example, check out the table below to see how much people with good credit save on their rate in New Hampshire.

Average Annual New Hampshire Insurance Rates by Credit and Company
CompanyAverage Annual Rates with Poor CreditAverage Annual Rates with Fair CreditAverage Annual Rates with Good Credit
Allstate$3,368.00$2,492.26$2,352.43
Geico$1,907.34$1,564.33$1,363.32
Liberty Mutual$12,169.00$7,441.00$5,821.00
Nationwide$2,896.14$2,374.92$2,191.67
Progressive$2,986.88$2,624.47$2,462.05
State Farm$3,096.59$1,927.69$1,536.16
USAA$2,606.19$1,714.14$1,443.21
Get Your Rates Quote Now

Compare RatesStart Now →

On top of this, with good credit, you’ll likely see better repayment options on your auto loan. Between saving on your auto insurance and paying off your loan on better terms, it pays to have good credit.

Now that you know about good credit discounts, start shopping for auto insurance today. Enter your ZIP code into our free comparison tool below to buy auto insurance from providers in your area.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption