New Research from CarInsurance.com Identifies Worst States for Drivers with Bad Credit
January 16 2019 - 9:00AM
CarInsurance.com, a one-stop destination for unbiased, expert
advice on car insurance, released new research today ranking the
worst states for insurance rates for drivers with bad credit. The
findings highlight the average percentage increase in car insurance
rates for drivers with poor credit, compared to those with good
credit, in the 47 states where credit is a factor in insurance
rates.
Michigan (167 percent increase) tops the list of worst states
for bad credit drivers by a wide margin. Auto insurance rates in
that state are almost one-third higher than the next one on the
list. The average car insurance increase for a Michigan driver with
bad credit is nearly $4,000.
The top five worst states for insurance rates for drivers with
bad credit, as a percentage compared to the rates paid by drivers
with good credit in each state, includes:
- Michigan (167 percent)
- New Jersey (106 percent)
- Arizona (94 percent)
- Texas (93 percent)
- Utah (91 percent)
According to the research, drivers with bad credit pay on
average 71 percent more nationally for car insurance than those
with good credit. That average rate hike is more than twice as much
as the average insurance rate increase after an accident (32
percent).
“It may be hard to believe, but missing a few credit card
payments may have a worse effect on your car insurance rate than
crashing your vehicle,” said Michelle Megna, managing editor at
CarInsurance.com. “However, drivers with bad credit can
counterbalance ballooning rates by closely reviewing their options.
Every insurer uses its own formula to set rates, so by researching
multiple insurers, it’s possible for those with bad credit to save
up to $2,000 a year on their insurance, helping to offset rising
insurance costs in states like Michigan and others.”The report also
reveals other key insights, including:
- Why Michigan tops the list: The economic and political
factors that play into making Michigan the worst state for bad
credit drivers.
- How and why car insurance companies use credit scores:
90 percent of car insurance companies nationwide use credit
information when determining insurance rates, based off a
“credit-based insurance score” using the information contained in
credit reports.
- Options for bad credit drivers: The best types of car
insurance for bad credit, how to determine the right coverage and
ways to improve credit scores and rates.
- Nationwide average by company: The average rates for bad
credit drivers for six major insurers.
- Rates from major carriers broken down by state: The
average rates for drivers with bad credit from top insurers, by
each state.
To view the full report, and see where your state ranks, please
visit CarInsurance.com to access it here.
CarInsurance.com is owned and operated by QuinStreet, Inc.
(Nasdaq: QNST), a pioneer in delivering online marketplace
solutions to match searchers with brands in digital media.
QuinStreet is committed to providing consumers and businesses with
the information and tools they need to research, find and select
the products and brands that meet their needs.
CarInsurance.com is member of the company’s expert research and
publishing division.
About CarInsurance.com
CarInsurance.com is a one-stop online destination for car
insurance information, providing unbiased, expert advice on how to
shop for insurance plans, what consumers should pay and what
coverage they can get from a policy. Since 2003, CarInsurance.com
has been educating consumers through its breadth of expert content,
tools, and in-depth studies to help site visitors make informed
decisions about their car insurance.
Website: www.carinsurance.comTwitter:
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Liberty Communications for QuinStreet
Rick Judge, 415-429-5652
QuinStreet@libertycomms.com
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