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. Simplify car insurance before you quote. Your policy coverage options depend on what your state requires, how much you have to protect, whether your vehicle is financed, and your risk tolerance.
Our car insurance calculator works as an estimator of your car insurance coverage needs and explains the strategy for choosing protection. Many have an impressive range of policy options, making it difficult to compare policies and determine who offers the lowest auto insurance rates. 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. The reason for this is that if the vehicle were involved in an accident, the insurance company would likely stop the car in its entirety.
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. Car insurance costs are different for every driver, depending on the state you live in, the insurance company you choose, and the type of coverage you have. Buying a huge SUV may sound exciting, but insuring a 5,000-pound top-of-the-line vehicle can be more expensive than insuring a small (but safe) lower-cost passenger car. Your insurance credit rating is an important factor in the car insurance quotes you receive, except in a few states.
It's unlikely that you'll move to another state simply because it has lower car insurance rates. California, Hawaii, Massachusetts and Michigan don't allow insurers to use credit to determine auto insurance rates. However, people are sometimes surprised to discover that insurance companies can also consider credit ratings when determining insurance premiums. Also remember to compare the best auto insurance companies to find the one that fits your coverage and budget needs.
A NerdWallet analysis of the cheapest cars to insure among the best-selling vehicles revealed that the lowest insurance rates are for the Subaru Outback, the Jeep Wrangler and the Honda CR-V. 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.