560 Credit Score and Car Insurance: Costs and How to Save

A 560 credit score can quietly add about $92 per month to a car insurance bill, even when the driving record is spotless. Nationally, drivers with excellent credit pay an average of $120 per month for full coverage, while drivers with poor credit pay $212 per month for the same protection [1]. That gap works out to $1,104 per year, all of it tied to a number that has nothing to do with how you drive.

A 560 score is hard. The good news: it is not permanent, you have real options today, and shopping for a new quote does not hurt your credit at all.

This guide breaks down how a 560 credit score affects your car insurance rate, which states do not let insurers use credit at all, and a parallel-track plan that lowers your rate while you work on the score itself.

Want to skip ahead and see today's quotes? Use the form above to compare rates from top carriers in about 2 minutes. It is 100% free, and there is no obligation.

What a 560 Credit Score Means for Car Insurance

A 560 credit score sits in the FICO "poor" range, which runs from 300 to 579 [2]. The next tier up, "fair," begins at 580. That 20-point gap matters because insurers and lenders both treat tier boundaries as decision points, not the exact score itself.

When a car insurance company looks at your credit, it is not pulling the same FICO number a mortgage lender uses. It is using a credit-based insurance score, a separate model built from credit report data but weighted differently [3]. The two scores can move in the same direction over time, but they are not the same number.

Three things follow from that:

• Your insurance score may be higher or lower than your FICO score because the formulas weigh factors differently
• Different carriers use different versions of credit-based insurance scoring, so quotes can vary widely
• Improvements to your underlying credit usually help both scores, but the timing of when that shows up on your insurance bill depends on your renewal schedule

A 560 FICO score does not automatically lock you out of coverage, and it does not force you to pay the highest possible rate. It does mean the rate you see at first is probably not the rate a different carrier would charge.

How Much More You Pay With a 560 Credit Score

Drivers with poor credit (below 580) pay an average of $212 per month for full coverage, while drivers with excellent credit (750+) pay $120 per month for the same policy [1]. The full tier comparison looks like this.

Credit Level	Monthly Avg. (Full Coverage)	Annual Avg. (Full Coverage)
Excellent (750+)	$120	$1,440
Poor (below 580)	$212	$2,544

Last updated: April 2026 [1] | View interactive table

That gap is $92 per month, or $1,104 per year, for two drivers in the same car with the same coverage and the same clean record. It is one of the largest single-factor swings in car insurance pricing, and it is invisible until you compare a quote against the average for your tier.

For example, say you have a clean driving record, drive a midsize sedan, and your credit score recently dropped to 560 after a medical bill went to collections. Your renewal pulls your updated credit, and the quote climbs by roughly the credit-tier gap. Nothing about your driving changed. Your bill went up because of how the carrier weighs credit at renewal.

Two important details about that example:

• The exact dollar increase depends on your state, your carrier, and how heavily that carrier weighs credit
• Two carriers looking at the same driver and the same credit file can produce very different numbers, which is why comparison shopping pays so much when credit is poor

For the broader cost picture by age, driving record, and vehicle, see our car insurance costs by age and profile breakdown. For why your bill keeps climbing more generally, see why is car insurance so expensive.

Why Insurers Use Credit (And Why a Soft Pull Won't Hurt You)

Insurance companies use credit-related data because, in their loss models, certain credit patterns line up with claim frequency [3]. That does not mean the model treats you as a bad driver. It means the carrier's pricing formula reads your credit profile as one input among many, alongside your driving record, your zip code, your vehicle, your annual mileage, and your coverage choices.

You can disagree with the practice. Plenty of drivers do, and some states have banned it for exactly that reason. Until your state changes the rules, the practical move is to treat it as a pricing signal and shop around it.

One common worry is that getting more quotes will damage your credit score. That worry is misplaced. Insurance quote requests trigger a soft credit inquiry, not a hard pull, so they do not lower your FICO score [4]. You can compare three carriers, six carriers, or a dozen, and your credit file will not move because of it.

Three takeaways:

• A credit-based insurance score is built from credit data but is not the same as your FICO score
• Each carrier uses a different version of the model, so quotes can vary widely
• Comparison shopping is a soft pull and does not damage your credit

If you want a step by step on how to get quotes the right way, our guide on how to compare auto insurance rates walks through the process.

States That Ban or Limit Credit-Based Insurance Scoring

Four states ban insurers from using credit-based insurance scores in auto pricing entirely: California, Hawaii, Massachusetts, and Michigan [5]. If you live in any of these states, your credit score has zero effect on your auto rate, period. A 560 score is not a penalty there.

A handful of other states limit how insurers can use credit data without banning it outright. Maryland, for example, restricts how insurers can use credit at renewal. Rules in this group change over time and vary by line of coverage (auto vs. homeowners), so check your state's department of insurance for the current rules.

In the other 46 states plus Washington, D.C., credit-based insurance scoring is allowed as a rating factor [5]. That is where most of the credit-tier gap shows up.

A short version:

• No credit pricing in auto: California, Hawaii, Massachusetts, Michigan
• Restricted credit pricing in auto: Maryland (and a few others; rules differ)
• Credit pricing allowed in auto: the remaining 46 states plus D.C.

If you want to see how rates compare from state to state, our average car insurance cost by state page has the full table for 2026. You can also explore the interactive state rates table.

Action Plan: Improve Your Credit and Lower Your Rate at the Same Time

Most credit advice and most insurance shopping advice live in separate places. They should not. With a 560 score, the fastest way to lower your bill is to run both tracks at the same time, because the rate gain from comparison shopping shows up in days while the rate gain from credit repair shows up at the next renewal.

Here is the parallel-track plan.

1. Pull your credit reports and check for errors. You can request a free copy of your reports from each major bureau through the official site listed in the FTC's consumer guide [4]. Errors are more common than people expect, and disputing a wrong late payment or duplicate account is one of the fastest score wins.

2. Lower your revolving balances. Card balances near the limit drag down your score even if you pay on time. The card with the highest utilization usually moves the needle most. Bring it down as far as you can, then keep it there.

3. Stop fresh late payments cold. A new late mark on a 560 file keeps the score under pressure. Set up autopay for at least the minimum on every account, and use calendar reminders for anything that cannot be automated.

4. Compare quotes from at least three carriers right now. Do not wait for your credit to improve before shopping. Comparison shopping is a soft pull, the spreads between carriers are widest at the lower credit tiers, and you can save real money this week without changing your score by a single point. Drivers who compare and switch save a median of $461 per year based on a Consumer Reports survey [6].

5. Time your next deeper shop to your renewal date. Your current carrier usually re-pulls credit at renewal, not in the middle of your policy. If you push utilization down over two or three statement cycles before that re-pull, the new quote can be meaningfully lower. If the new quote is still high, that is the moment to switch.

For example, say your renewal date is two months out. You bring two card balances down by paying above the minimum, you dispute one wrong late mark, and you collect three quotes from comparison the week before renewal. If your current carrier raises your rate at re-pull, you have offers ready to go and you switch the same day. If your carrier lowers your rate at re-pull, you keep the savings.

For more on the timing question, see our guide on when to switch car insurance.

How to Shop for Coverage While Your Credit Is Still Poor

Your credit may take months to climb. Your insurance bill does not have to wait that long. Here are the moves that work today.

• Compare at least three carriers in one sitting. Spreads between carriers are widest at the bottom credit tiers, so the value of shopping is highest exactly when your score is lowest.
• Review your deductible carefully. Raising a deductible from $500 to $1,000 can lower your premium, but only if you have the savings to cover the higher out-of-pocket cost after a claim. See $500 vs $1,000 deductible for the trade-offs.
• Check every discount you qualify for. Common ones include bundling, safe driver, paperless billing, low annual mileage, and pay-in-full. Our guide on discounts you might be missing covers the full list.
• Maintain continuous coverage. A lapse in coverage tells the next carrier you are higher risk, which usually pushes the new quote up regardless of credit.
• Think twice before cutting to minimum-only coverage. It can lower your bill in the short term, but it leaves your own car uninsured against most damage. Use it as a temporary bridge only if you truly cannot afford full coverage and you can absorb the loss of your car. See liability vs full coverage for the comparison.

Ready to compare? Use the form above to see today's rates from top carriers in about 2 minutes. It is free, with no obligation, and the quote request will not affect your credit.

If you want a deeper savings playbook beyond credit, our guide on how to save money on car insurance covers the rest.

Frequently Asked Questions

Can you get car insurance with a 560 credit score?

Yes. A 560 credit score does not block you from getting car insurance in any state. The challenge is price, not availability. In the 46 states (plus D.C.) where insurers can use credit data, a poor credit profile usually raises the quoted rate, so comparing offers from multiple carriers is the most useful step.

Does shopping for car insurance hurt your credit score?

No. Insurance quote requests trigger a soft credit inquiry, not a hard pull, so they do not lower your FICO score [4]. You can compare three carriers, six carriers, or a dozen and your credit will not move because of it. This is why repeat shopping at every renewal is one of the safest ways to save money.

How long until a credit improvement shows up on my insurance bill?

Most carriers re-pull credit data at renewal, not mid-policy. That means score improvements typically show up at your next renewal pull, not the day your score updates. If your renewal is months away and you want savings sooner, switching to a new carrier today is usually the faster path.

Will paying off a collection lower my car insurance rate?

It can help, but not always immediately. Paid collections still appear on your credit report and may take time to fade in their impact. The clearer wins are lowering revolving card balances, stopping new late marks, and disputing report errors. As your overall credit profile improves, your insurance score usually follows at renewal.

Which states do not let insurers use credit?

Four states fully prohibit credit-based insurance scoring in auto pricing: California, Hawaii, Massachusetts, and Michigan [5]. A few other states restrict how credit can be used, with rules that vary by line of coverage. In the remaining 46 states plus D.C., credit is an allowed rating factor.

Is a 560 credit score considered poor for insurance pricing?

Yes. A 560 sits in the FICO "poor" range (300 to 579) [2], which is the tier most insurers price highest in the credit gap. The next tier, "fair," starts at 580, so even small score improvements that cross 580 can change which pricing band you fall into at your next renewal.

Start the Two Tracks Today

A 560 credit score is real money on your insurance bill, but it is not a life sentence. The drivers who shrink the gap fastest do not pick between credit work and shopping. They run both tracks at once.

This week:

• Pull your credit reports and dispute any errors
• Lower your highest-utilization card balance
• Compare quotes from at least three carriers using the form above

This month:

• Set up autopay on every account so no fresh late marks land
• Mark your renewal date on the calendar so you know when your carrier re-pulls credit
• Decide whether to switch carriers now or wait until renewal, based on which option saves more

Compare rates from top carriers now. Enter your zip code, see what today's quotes look like for your profile, and find out in about 2 minutes whether you are paying more than you should. It is 100% free, the request is a soft pull, and there is no obligation either way.

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