A NerdWallet analysis found that having poor credit can increase people's car insurance rates by hundreds of dollars a year compared to having good credit. In most situations, a FICO score of 579 or lower is considered “bad credit,” but insurers have their own credit models that may have a different limit. We examined the rates for men and women in their 40s for all zip codes in any of the 50 states and in Washington, D.C. Although it is one of the largest insurers in the country, Liberty Mutual is not included in our rate analysis due to the lack of publicly available information.
Property and accident insurance services are offered through NerdWallet Insurance Services, Inc. OK9203 Property & Casualty Licenses. Download a PDF version of this brochure. A better driving record, especially a clean driving record, can get you a better rate.
Accidents and fines can affect your record, and new drivers without a record can also pay more. Keep in mind that opting for a usage-based or pay-per-mile insurance program means that it allows your insurance company to track your driving behavior. Learn more about car insurance for teens, insurance for seniors, and how age affects your car insurance rate. On average, car insurance rates are higher when you're younger and decrease (or stabilize) as you age.
It's unlikely that you'll move to another state simply because it has lower car insurance rates. Your insurance credit rating is an important factor in the car insurance quotes you receive, except in a few states. The right amount of car insurance for you depends on the make and model of your car, how (and where) you drive, and your unique needs. However, people are sometimes surprised to discover that insurance companies may also consider credit ratings when determining insurance premiums.
If you don't have loopholes or cancellations in your insurance history, you'll usually get a lower car insurance rate. However, smaller regional insurers, such as Auto-Owners Insurance and Erie Insurance, tend to have higher customer satisfaction than large companies and may also have lower auto insurance rates. Your insurance company will stop charging you for the accident after several years (the duration varies by insurer and state). Luxury cars can be more expensive to repair and replace, and they tend to cost more to insure than a regular vehicle.
The insurance provider you choose is important, however, these are the factors that affect your car insurance rates. If you receive a quote from an auto insurance company to insure a single vehicle, you could end up with a higher quote per vehicle than if you requested to insure multiple drivers or vehicles with that company. By the way, some companies may also offer a discount on car insurance if you keep other policies with the company, such as homeowners insurance. The good news is that sometimes you can increase your coverage amounts by thousands and your car insurance rate will only change minimally.
Allstate, for example, offers a 10% discount on car insurance and a 25% discount on home insurance if you combine them, so check if those discounts are available and applicable.