Poor credit ratings drive up auto insurance costs for Arizona drivers

PHOENIX – Bad credit hurts drivers in Arizona more than in most states when it comes to buying auto insurance, according to a rate comparison website.

According to The Zebra, Arizona drivers with poor credit pay 138% more on average than motorists with exceptional credit, even if they’ve never had a ticket or been in an accident.

That was the 11th biggest differential in the U.S., according to the website’s June analysis.

The Zebra broke down credit ratings by five tiers, from poor (300-579) to exceptional (800-850).

#DYK Your credit score alone can DOUBLE your car insurance rates. Yes, really! https://t.co/mwjFSmDg4N pic.twitter.com/4SN79uUOOY

— The Zebra (@TheZebraCo) June 18, 2019

The website found that drivers can save an average of 17%, or $355, by improving their rating by one tier.

In Arizona, drivers with poor credit paid an average of $2,673 per year for car insurance. That figure was $1,125 for drivers with exceptional credit, a difference of $1,548.

The U.S. average cost of car insurance for drivers with poor and exceptional credit differed by 109% ($1,421).

Nevada, at 199%, had the biggest discrepancy in the country.

A survey by The Zebra found that many drivers, 41%, don’t realize their credit score impacts their insurance rates.

Three states, California, Massachusetts and Hawaii, prohibit insurance companies from using credit ratings when determining rates, and Michigan lawmakers recently passed a similar ban.

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