Where Credit Scores Impact Insurance Rates the Most
More than 73 million Americans don’t realize that their credit score affects their car insurance rates, despite drivers with no credit paying an average of 67% more for coverage than those with excellent credit, according to WalletHub’s report on 2018’s States Where Credit Scores Affect Car Insurance the Most and accompanying credit score survey.
States Where Credit Scores Affect Car Insurance the Most
| 1 | New Jersey | 6 | Arizona | |
| 2 | Virginia | 7 | Pennsylvania | |
| 3 | Michigan | 8 | Tennessee | |
| 4 | Texas | 9 | Colorado | |
| 5 | Wisconsin | 10 | Missouri | |
| 11 | Minnesota |
Other Key Findings
- 3 in 10 people mistakenly think their driving record affects their credit score.
- 83% of people don’t think bad credit makes you a bad driver.
- 40% of people say they’re not getting their money’s worth from their car insurance.
- The five major auto insurance companies use credit data in 81% of the states in which they operate, on average.
- People with no credit pay over twice as much for car insurance from Farmers Insurance than people with excellent credit. Even GEICO (the major insurer least reliant on credit data) has a 24% penalty.
Category: Featured, General Update, News
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