Auto Insurance Rates are Based on Your Credit Score

Why does your credit score affect what you pay for car insurance?

Credit can have a significant impact on car insurance rates. In fact, drivers with very poor credit pay 69% ($1,537) more for car insurance than drivers who have exceptional credit. California, Hawaii, Michigan, Massachusetts and Washington don’t allow credit as a ratings factor, so there is no difference in premiums based on credit scores in these states

Defensive Driving

Source: the Zebra 2022 Report