Anyone wishing to buy a new car knows that a good credit score is imperative to getting a good loan rate. But, what many may not know, is that your credit score can have an impact on the amount you will be paying to insure your new ride. According to the 2016 Car Insurance and Credit Scores report released by WalletHub, low credit scores can impact car insurance premiums by up to 122 percent. The key findings from the report show that people with no or very poor credit pay an average of 53 percent more for car insurance than those who have excellent ratings. In Iowa, the report shows an average 12 percent fluctuation between those groups. The report also provides information about which insurance companies rely on credit data the most and those that use it the least in calculating their rates. Farmers Insurance is the company that appears to weigh credit scores most heavily while determining rates while GEICO uses it the least. And when it comes to finding out how and why the company came up with a specific charge, Travelers Insurance is most likely to share with you their use of your credit numbers while State Farm is the least likely to let you know what impact it had. To see the complete report, simply follow this link.
