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buying States Where Poor Credit Has the Biggest Impact on Car Insurance Rates

19:37  13 april  2018
19:37  13 april  2018 Source:   msn.com

The great myth about car insurance costs

  The great myth about car insurance costs Consumer watchdogs say insurance companies are doing you no favors if you're one of these lower-risk driversThat's the counterintuitive, but probably accurate, picture drawn by two surveys of auto insurance rates -- one by the Consumer Federation of America (CFA), the other by Internet auto insurance search engine The Zebra.

States Where Poor Credit Has the Biggest Impact on Car Insurance Rates . A study finds low credit scores can cost you thousands a year in car insurance , especially in Michigan. By Joe D'AllegroApril 6, 2018.

Poor credit can have a huge impact on car insurance rates , as this 2018 analysis shows. Poor credit has the biggest effect in Michigan, Kentucky and New Jersey, our analysis found. Lacie Glover.

  States Where Poor Credit Has the Biggest Impact on Car Insurance Rates © George Rose/Getty Images

A nationwide report by NerdWallet finds that auto insurers widely use consumers' credit histories to determine rates, and those with low credit scores pay an average of $1,270 extra per year in car insurance. Insurers see those with low credit scores as more likely to file claims, the report states.

The personal finance site compared insurance prices for a hypothetical 30-year-old driver with a clean driving record and good credit to prices for a driver with bad credit, but an otherwise identical profile. Results showed prices varied widely. Wyoming, Iowa and North Carolina had the smallest spread between insurance rates, with bad-credit drivers paying an average of $235, $449, and $451 extra per year, respectively. By contrast, those with bad credit are hit hardest in New Jersey, Kentucky, and Michigan, where they pay an average of $2,138, $2,216, and $5,571 extra per year, respectively. To put Michigan's outlying figures in perspective, note that U.S. Census Bureau data from 2016 shows median household income in the state at only $52,492. Having bad credit in the American auto industry's home state costs drivers dearly.

These Are The Cheapest And Most Expensive Cars From 2006 To 2016 To Insure

  These Are The Cheapest And Most Expensive Cars From 2006 To 2016 To Insure Buying a car that’s 10 years old isn’t a huge risk anymore. What’s cheap and what’s expensive to insure? Insurance resource company Insure.com recently released a list of cars from 2006 to 2016 that it found to be the least and most expensive to insure. It compiled this list by comparing rates through using an identical driver profile for all the cars “at six major insurance carriers in multiple ZIP codes in each state and the District of Columbia.

Learn why credit scores affect car insurance rates and how this impacts you as a consumer. (Unless you live in Massachusetts, Hawaii, or California, where the practice has been banned.)

Auto Insurance : Compare Rates and Get Car Insurance Quotes . It probably comes as no shock that your credit can have an impact on interest rates for loans. When it comes to your mortgage, auto loan or credit cards, the lower your credit score, the more you'll pay in interest.

NerdWallet found the difference in insurance premiums between those with high credit scores and low scores exceeds $1,000 annually in 28 states, plus the District of Columbia. The report, written by Lacie Glover, explains that the only states where bad credit does not impact car insurance rates are California, Massachusetts, and Hawaii. These three states ban auto insurers from basing rates on credit information.

FICO credit scores range from 300 to 850. There is no official number demarking a "bad" credit score, and each individual insurer and lender will use its own criteria to determine creditworthiness. Investopedia has a good explanation of how credit scores work.

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Which states let you use an app as proof of auto insurance? .
Which states let you use an app as proof of auto insurance?Luckily, my state, New Jersey, has accepted electronic proof of insurance since 2015 (though I somehow did not know this until last year — like, I said, complacent). Almost every state now accepts electronic proof of insurance. Every major auto insurer now allows customers to display their ID cards using a mobile app.

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