Poor credit can affect auto premiums more than accidents

A recent study from The Zebra showed poor credit can raise car insurance rates by 114% or more.

There are benefits to even minimally increasing your credit score. According to the report, drivers nationwide who improve their credit score just one tier could save an average of 17% a year. (Credit: Andrey Popov/Adobe Stock)

A bad credit score can affect your auto insurance premium more than having a hit-and-run on your record, says a recent study from The Zebra. Even drivers with squeaky-clean records, they say, can see their rates double if their credit tanks.

Only a few states — California, Hawaii, Massachusetts and Michigan — have banned insurance companies from using credit scores to price or deny insurance policies. According to the report, however, both state and federal legislators are considering further bans on credit rating use for insurance.

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Brittney Meredith-Miller

Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [email protected].

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