[terry1156]

You do have a credit report even if you don't borrow money. If you have a bank account, then you likely have a credit report.

You'd be correct to assume that the best credit score would go to someone with credit cards open accounts, but zero balances.

Underwriting for insurance is all done by statistics. It's why you can get a better rate on your car insurance if you are an engineer instead of another profession or if you're a good student. If you have a good credit report, the statistics say your are a lower insurance risk compared to someone with bad credit or no credit and therefore can get a better rate.

So to answer your question, yes, insurance companies do conclude that a person with no credit is a worse driver (higher insurance risk) than someone with a good credit rating.