Drivers with low credit scores pay over S1,500 more for auto insurance, on average, than those with stellar scores, according to new research from The Zebra, a car insurance comparison website.
A few states have banned insurance companies from using credit scores to make insurance decisions, but many states do use credit scores in their deliberations. Even with a perfect driving record, says Zebra, drivers with poor credit scores can see their car insurance rates more than double.
The Takeaway: It pays to improve your credit score. Drivers can lower their insurance premiums by almost 20% on average by boosting their credit score into the next highest tier.