Posted on 06/21/22

How Much Does Your Credit Score Affect Your Car Insurance Premiums

How Much Does Your Credit Score Affect Your Car Insurance Premiums

There are many factors that can impact the cost of a driver's premiums. It is no secret. Car insurance costs can be affected by factors such as the make and model of your vehicle, as well as the color of your car. Your location is a major factor in determining insurance premium rates. This is true for all states and cities, as well as everything in between. You may be surprised to know that insurance premiums are affected by certain factors. Consider credit scores and their impact on auto insurance premiums. WalletHub, a personal finance website, published a report that outlined how credit scores affect how much insurance premiums are paid. Here are some of the findings:

  • The state of Connecticut had the lowest impact on auto insurance premiums (15% fluctuation), while the most significant effect was in the state of Michigan (115% variation).
  • The average. There is a 49% difference in the cost of car insurance premiums between someone with great credit and someone without credit history.

You can find the full report from WalletHub if you are interested in seeing what else they found. If you are thinking of buying a car online, this is a great resource.