Many drivers don’t realize how much their credit score can impact car insurance premiums. In most states, insurers use your credit score to help determine your rates, and even a small change in your score can lead to significant fluctuations in your premium.
However, three states—California, Massachusetts, and Hawaii—have banned the use of credit scores in setting car insurance prices. Other states, like New Jersey, Virginia, Arizona, Texas, Wisconsin, and Tennessee, may place more weight on credit scores than others.
Navigating State Laws and Finding Better Rates
Each state has its own rules regarding how credit scores are used to calculate car insurance premiums. It’s a good idea to speak with your agent about your state’s laws and how they could affect your rates.
Your insurance agent can guide you toward the best options based on your credit tier and financial situation. Even if your credit isn’t perfect, there are often discounts available to help lower your premium.
https://www.bankrate.com/insurance/car/how-does-credit-score-impact-car-insurance
https://www.bankrate.com/insurance/car/how-does-credit-score-impact-car-insurance