How Your Credit Score Affects Car Insurance Rates

Your credit score isn’t just for loans and credit cards—it also directly impacts your car insurance premiums. Understanding this connection can help you save big and choose the right coverage with us.

1. Why Credit Matters to Insurers

Studies show that drivers with lower credit scores file more claims—so insurers use score-based predictors to estimate risk. In fact, some companies charge 20–50% more for drivers in the lowest credit tiers.

2. How Scores Translate to Rates

• Excellent credit (720+) often earns the lowest premiums.

• Good credit (680–719) gets moderate rates—usually 5–15% higher.

• Fair credit (620–679) may cost 20–35% more.

• Poor credit (below 620) can increase rates by up to 50% or more.

This means a $1,200 policy for someone with excellent credit could jump to $1,800 for someone with poor credit.

3. Why Insurers Use Credit Scores

Insurance scoring has been shown to predict future claim costs 30–50% more accurately than driving history alone. It helps insurers better price risk—but some states limit or ban its use.

4. States That Limit Credit Use

Certain states—such as California, Florida, Massachusetts, and New York—restrict or prohibit the use of credit in rate calculations. If you live here, you could see significant savings unaffected by your score.

5. How to Improve Your Rate Today

• Improve your credit score by 50 points and reduce rates by up to 20%.

• Shop around—insurers weigh credit differently; premiums vary widely.

• Bundle policies—tying in home or renters insurance can offset a low score.

• Choose insurers wisely—some place less emphasis on credit.

6. How We Help

At [Your Agency Name], we:

• Compare quotes from nearly 100 insurers to find the best fit for your credit profile.

• Identify providers offering minimal credit penalty.

• Help you build credit-savvy habits that improve your score—and your rates.

Final Takeaway

Your credit score can make or break your insurance rates—poor credit could cost you 50% more. But with strategic shopping, bundling, and score improvement, you can unlock significantly lower premiums.

Ready to Pay Less for Insurance?

Get a free personalized quote now—we’ll match you with the best rates based on your credit score and help you build savings today.