Insurance Premium Calculator

Discover how your credit score affects auto and home insurance costs

Insurance Details
Enter your information to calculate premiums

Age affects base insurance rates

Current market value of your vehicle

Your Insurance Premium
Auto insurance based on credit score: 740-850
$1,250
Annual Premium
$104
Monthly Cost
0%
Above Best Rate
Credit Score Impact on Auto Insurance
See how different credit scores affect your insurance premiums
Credit ScoreRatingRate MultiplierAnnual PremiumMonthly CostExtra Cost/Year
740-850Excellent1x$1,250$104Best Rate
670-739Good1.15x$1,438$120+$188
580-669Fair1.45x$1,813$151+$563
300-579Poor1.75x$2,188$182+$938
Why Credit Affects Insurance Rates

Insurance companies use credit-based insurance scores because studies show a correlation between credit management and insurance claims. Here's what they consider:

Credit Factors Used

  • Payment history (most important)
  • Outstanding debt levels
  • Length of credit history
  • Types of credit accounts
  • New credit applications

State Regulations

  • California, Hawaii, Massachusetts ban credit scoring
  • Maryland, Nevada have restrictions
  • Most states allow credit-based pricing
  • Cannot be the sole factor in coverage decisions

What's NOT Considered

  • Income level
  • Race, gender, religion, nationality
  • Marital status
  • Interest rates you pay
Strategies to Lower Insurance Costs

Improve Your Credit Score

  • Pay all bills on time consistently
  • Keep credit card balances low
  • Don't close old credit accounts
  • Check credit reports for errors
  • Limit new credit applications

Other Ways to Save

  • Bundle auto and home insurance
  • Increase deductibles to lower premiums
  • Take advantage of discounts (safe driver, etc.)
  • Shop around with multiple insurers
  • Consider usage-based insurance programs

Auto Insurance Specific

  • Choose vehicles with good safety ratings
  • Install anti-theft devices
  • Complete defensive driving courses
  • Maintain continuous coverage

Home Insurance Specific

  • Install security and fire safety systems
  • Update electrical, plumbing, and roofing
  • Choose wind/hail resistant materials
  • Stay with the same insurer for loyalty discounts
75%
Higher premiums with poor credit
$900+
Average extra cost per year
47
States allow credit scoring
90%
Of insurers use credit scores

Ready to Lower Your Insurance Costs?

Improving your credit score can save you hundreds of dollars annually on insurance premiums. Start your credit improvement journey today.

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