Back to Blog
No Credit Check 9 min readBy Sean — A-LA Auto InsuranceApr 14, 2026

Car Insurance With Bad Credit in Texas 2026

No-credit-check options, how credit affects your rate, and how to save 20–40% even with poor credit. Liability from $47/month.

Quick Answer

Bad credit can increase Texas car insurance rates by 40–80% with standard carriers. However, non-standard carriers available through A-LA Auto Insurance do not use credit scores and offer liability from $47/month. Texas Insurance Code §2251 allows credit-based scoring, but you are not required to use a carrier that checks credit. A-LA compares 35+ carriers at 13 DFW offices to find the lowest rate regardless of credit.

$47/mo

No-Credit-Check From

35+

Carriers Compared

40%

Potential Savings

13

DFW Locations

How Credit Affects Car Insurance Rates in Texas

Most standard insurance carriers use a credit-based insurance score as one of several rating factors. This is different from your regular FICO score but uses similar data. Here's how credit tiers typically affect rates with standard carriers:

Credit TierFICO RangeRate ImpactExample Monthly
Excellent750+Baseline (lowest)$130–$180
Good670–749+10–20%$145–$215
Fair580–669+25–45%$165–$260
PoorUnder 580+40–80%$185–$320
No CreditN/A+30–60%$170–$285

Example rates for full coverage in DFW, 30-year-old driver, clean record. Impact varies by carrier.

Key insight:Non-standard carriers skip credit entirely. A driver with poor credit paying $285/month with a standard carrier could pay $150–$180/month with a non-standard carrier through A-LA — a savings of $100+/month.

Standard vs. No-Credit-Check Carriers

Standard Carriers

  • Check credit-based insurance score
  • Lower rates for excellent credit
  • Higher rates for poor/no credit
  • May decline very low credit applicants
  • Best for: good credit + clean record

Non-Standard (No Credit Check)

  • No credit check at all
  • Rate based on driving record + vehicle only
  • Available through A-LA at all 13 offices
  • Liability from $47/month in DFW
  • Best for: bad/no credit, violations, foreign license

Under Texas Insurance Code §2251, insurers are permitted to use credit-based insurance scores as one factor in setting premiums. However, there are important protections:

  • Credit cannot be the sole factor in determining your rate or denying coverage.
  • Insurers must notify you if credit adversely affected your premium.
  • You can request a re-evaluation if your credit improves.
  • Insurance credit inquiries are soft pulls — they do not affect your credit score.
  • You are not required to use a carrier that checks credit — non-standard carriers are available.

7 Ways to Save on Insurance With Bad Credit

1

Use a no-credit-check carrier through A-LA

Non-standard carriers skip credit entirely and rate based on driving history and vehicle. This alone can save 20–40%.

2

Compare 35+ carriers at once

A-LA compares standard and non-standard carriers side by side to find the absolute lowest rate for your credit tier.

3

Choose liability-only for older vehicles

If your car is worth under $5,000, dropping comprehensive and collision saves $80–$150/month.

4

Maintain continuous coverage

A lapse in coverage is a separate negative factor. Keeping even minimum liability active protects your rate long-term.

5

Take a defensive driving course

Texas allows a premium discount every 3 years. This applies regardless of credit score.

6

Bundle auto + home or renters

Bundling can save 10–25% even with a no-credit-check carrier.

7

Work on improving your credit score

Paying down debt and making on-time payments can improve your insurance score within 6–12 months, qualifying you for lower standard rates later.

Frequently Asked Questions

Yes. Standard carriers use credit-based insurance scores and charge 40–80% more for poor credit. Non-standard carriers through A-LA skip credit entirely.
Yes. A-LA works with non-standard carriers that do not run credit checks. Liability starts from $47/month at all 13 DFW offices.
With standard carriers, poor credit (FICO under 580) increases rates 40–80%. A $150/month policy with good credit could cost $210–$270/month with poor credit.
Yes. Texas Insurance Code §2251 allows credit-based insurance scoring. But credit cannot be the sole factor, and you’re free to choose non-standard carriers that skip credit.
It’s separate from your FICO score. It uses payment history, debt, credit length, and new inquiries to predict insurance claim likelihood. Range: 200–997.
No. Insurance credit checks are soft inquiries that do not affect your credit score. Get as many quotes as you want.
Use a no-credit-check carrier through A-LA, compare 35+ carriers, choose liability-only for older cars, maintain continuous coverage, take a defensive driving course, and bundle policies.
A-LA does not check your credit. We compare 35+ carriers including non-standard ones that skip credit entirely to find your lowest rate.

Bad Credit? Get Your Rate Today

No credit check. 35+ carriers compared. Same-day coverage from $47/month. 13 DFW offices with bilingual agents.

(866) 252-6116
S

Sean — A-LA Auto Insurance

Licensed Insurance Agent — A-LA Auto Insurance, Dallas-Fort Worth

Sean is a licensed insurance agent at A-LA Auto Insurance, a TDI-licensed independent agency with 13 offices across Dallas-Fort Worth. He specializes in helping Texas drivers find affordable coverage — including SR-22 filings, non-standard auto, no-credit-check options, and coverage for drivers without a US license. Call (866) 252-6116 to speak with the team directly.

A-LA Auto Insurance is a Texas Department of Insurance (TDI) licensed agency. For personalized advice, call (866) 252-6116.

QuoteCALLNear You