Compare car insurance rates for bad credit drivers.
In all states except California, Hawaii, Massachusetts, and Michigan, your credit history is one of the most important criteria influencing your vehicle insurance rate. Carriers utilize your credit history to assess your likelihood of filing a claim.
While prices can increase in some circumstances, it’s crucial to understand that every business evaluates credit differently, and this element varies by state even within insurers. In our analysis, drivers with low credit who are insured by Nationwide could pay 33% more – $439 more per year — than identical drivers with strong credit. Meanwhile, the average premium for complete coverage at State Farm more than doubles for drivers with bad credit versus those with strong credit.
Certain states ban the use of credit in rate setting, and how insurers treat credit varies by state. For example, state regulators in one state may provide more leeway for credit-based pricing than others, resulting in state-specific differences.
According to our research, a driver with bad credit in North Carolina could spend up to 36% more than a driver with good credit.
In Missouri, Delaware, New Jersey, Arizona, Arkansas, and Idaho, having bad credit raises the average insurance rate by 70% when compared to drivers with good credit.
In Wisconsin, average rates for bad credit drivers were 158 percent higher than average rates for good credit drivers.
Compare minimal and full coverage rates for accident-prone drivers.
Your accident history will effect your auto insurance premium in very different ways depending on the company. Before you begin shopping for auto insurance, compare each insurer’s average rates for drivers who have been in an accident. If you have an on-the-record accident, compare auto insurance quotes one, three, and five years later to ensure you continue to get the best and cheapest rate available.
The cheapest vehicle insurance provider for a person with a clean driving record may not be the lowest after an at-fault accident. For example, while Geico typically has the lowest average rates for drivers with a clean driving history, our data shows that American Family has the lowest average rates for drivers with a recent at-fault accident — with rates after an accident only 7 percent higher on average than for our base profile.
How to Compare Automobile Insurance Quotes
To begin with, any vehicle insurance quotation you receive should be free, regardless of whether it comes from Geico, Farmers, or a small insurer you’ve never heard of. Some car insurance companies need a down payment to begin your coverage, but whether you buy car insurance online or through an agent, a simple price estimate should always be free. Here’s how to get started comparing prices.
