Credit Scores Cost Drivers up to 113% on Car Insurance

With the car-buying season in full gear, the free-credit-score website WalletHub yesterday, released its 2017 Car Insurance & Credit Scores Report, which examines the extent to which major auto insurers use credit data in policy pricing.auto-insurance-quotes

You can find a handful of highlights from the report below:

  • People with no credit pay 65% more for car insurance than people with excellent credit, on average. Drivers with no credit pay at least twice as much in PA, NJ, and MI.
  • Farmers Insurance seems most reliant on credit data, with credit newcomers paying over twice as much as excellent-credit customers. Even GEICO (least reliant) has a 40% penalty.
  • The five major auto insurance companies use credit data in 90% of the states in which they operate, on average. Only Progressive uses credit data in all of the states it serves.
  • Travelers is the most transparent about its use of credit data, providing a clear disclosure when generating quotes.

 

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