Credit Scores Significantly Affect Auto Insurance Rates

A recent study by Bankrate highlights the significant impact of credit scores on auto insurance premiums. Drivers with poor credit pay an average of 76% more for car insurance compared to those with good credit. In Oklahoma, this translates to nearly $5,000 for full-coverage insurance for those with poor credit, while drivers with good credit pay about $2,200. Financial analyst Shannon Martin emphasizes the importance of improving one's credit score, suggesting strategies such as timely bill payments, reducing credit card debt, and utilizing credit tracking services.

Martin also shares insider tips for those with varying credit scores. For instance, if one spouse has good credit and the other has poor credit, it may be beneficial to list the individual with good credit as the named insured on the policy to lower rates. Furthermore, after improving a credit score, it’s advisable to contact the insurance carrier to potentially lower premiums by reflecting the new score.

The insights from this research indicate how critical maintaining a good credit score is not just for loans and mortgages, but also for obtaining affordable auto insurance. With the rising costs associated with poor credit, understanding and managing credit scores can lead to significant savings in auto insurance premiums.