How Your Credit Affects Your Car Insurance Rates, by Company and State

You probably already know that your car insurance premiums can be significantly higher if you have no or poor credit. WalletHub conducted a study by state and insurance carrier to find out just how much your credit can affect your insurance rate. The financial site obtained quotes from the five largest car insurance companies across the country, using two hypothetical, experienced drivers (male, age 36, licensed since age 20, driving a Honda Accord)—one with no credit history and one with excellent credit. They found that for the average state, there's a 65% price difference between the excellent credit score and the no credit scenario. Allstate seems to be the company using credit data for premium pricing most, with a 116% fluctuation, while State Farm appears to rely on it the least, with a 45% premium fluctuation. The other three insurers measured are Progressive, Geico, and Farmers Insurance.