Collision Ahead: How Low Credit Scores Can Impact Insurance Premiums

Photo: Adam Stefanca/Unsplash

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.

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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