According to research reviewed by the Insurance Information Institute, drivers with lower credit scores are statistically more likely to make large claims, which is why they pay more for auto insurance coverage. With the exception of Hawaii, Massachusetts, and California, all states allow insurance companies to use credit scores when determining the cost of a premium. This means that drivers’ credit scores in Pennsylvania affect how much they pay each year for insurance.
Average cost of full coverage auto insurance in Pennsylvania by credit
|Provider||double credit||average credit||good credit||Excellent credit|
|state average||$2,553||1791 USD||$1,476||1507 US dollars|
|national average||3,873 dollars||1865 USD||$1674||$1,487|
Best car insurance in Pennsylvania with bad credit
Pennsylvania drivers with poor credit pay an average of $2,553 per year for auto insurance, but the national average for drivers with good credit is $1,674—a difference of $879 per year.
It’s technical, but it’s actually not your credit score that raises your premium. It is an insurance score based on your credit. The two are nearly identical, as both are derived from your credit reports, which are written by The Big Three– TransUnion, Experian and Equifax. While your credit score is calculated by VantageScore or Fico, your insurance score is determined by LexisNexis or Fico.
Regardless, information such as the amount of debt, missed payments, and types of credit are used to determine the degree of credit insurance.
Depending on your score, you can be classified either as:
The only good thing about your credit’s impact on your premium is that it won’t cause you to be denied coverage. This will increase your premium, but will not cause the insurance company to not insure you.
Why does my balance affect my car insurance rates in Pennsylvania?
Several studies have shown a link between credit scores and the amount of claims. The lower the credit score, the higher the number of claims. This statistic is questioned every decade or two and a new set of studies is conducted. The most recent batch occurred in the mid-2000s.
In 2004, the Texas Department of Insurance released a major study confirming the findings of previous research. In 2007, the Federal Trade Commission did the same and also came to the same conclusion. Nobody can say why. All they can say is there is a link. In some studies, lower credit drivers posed a 50% greater financial risk for insurance companies.
The flip side of all this is that if you increase your credit score, your premium will go down. The only catch is that you may have to wait. Insurance companies usually write policies for 6 months, which means that your automatic policy does not renew until 6 months. Most companies do not review any information until it is time to write another policy. That is why many drivers decide to switch companies. When you switch, the new insurance company has to see your most recent information (such as your credit score) when calculating a premium.
What other factors affect auto insurance rates in Pennsylvania?
There are many factors besides the degree of credit-based insurance that determine what you pay for coverage. However, the true cost often comes down to the following three variables:
- state or metro Certain zip codes pose a greater risk to drivers than others. The appearance of the danger does not matter. Your vehicle can be damaged by theft, vandalism, natural disasters, or other drivers. No matter how it happens, drivers who live in risky zip codes pay more for car insurance. For example, Florida drivers commuting from Tampa to Orlando will likely save about $450 annually.
- Driving history – If you are rated as a high-risk driver because of your driving history, you will pay more than your peers. Multiple speeding tickets or accidents at fault are a warning sign for insurance companies likely to make more claims one day. The worst of course is the DUI. The average increase after a DUI in Pennsylvania is 109%.
- the cars Expensive cars increase insurance premiums, too. The best thing you can do on your own is to drive a mid-range vehicle with a high safety rating. A good example is the BMW 330i compared to the Honda Odyssey. A BMW costs an average of $2,225, while insuring a Honda is $1,454 a year.
How to get cheap car insurance in Pennsylvania with poor credit
There are so many things you can do to lower your insurance bill, many of which you can start doing now. This includes:
- Increase endurance: An increase in the deductible will lower your monthly bill. The downside is that if you get into an accident, you will be required to cover an amount larger than your pocket. Talk with an agent to determine the best deductible for your budget and coverage needs.
- Shopping nearby: To get the best auto insurance for bad credit in Pennsylvania, you will need to shop. Although every insurance company looks at the same information when calculating a premium, every company has its own pricing algorithm. This means that it is very possible to get lower premiums just by switching providers because each company values different things and penalizes them.
- Compare discounts: Another good way to get cheap auto insurance for bad credit in Pennsylvania is to compare discounts. Many companies offer the same discounts, but the amount you’ll save may vary greatly from one company to another. As you shop for auto insurance, be sure to also compare the discounts you can use right away and those you can use in the future.
Will I get a credit check when I get an insurance quote?
Yes, you will, but it will not harm your credit score because you are not applying for a loan or credit line. Credit checks in which you do not apply for some type of financing are referred to as soft credit checks. If you are, it’s called a hard credit check.
Is there car credit insurance in Pennsylvania?
Yes and no. There is no such thing as auto insurance for bad credit in Pennsylvania. Yes, some companies tolerate a lower credit score more than others, but there are no insurance companies that only work with drivers with bad credit. Additionally, it may not be your credit score that increases your premium. It could be a combination of factors, which is why you should shop around for the best price.
Bankrate uses Quadruple Information Services to analyze 2021 rates for all zip codes and carriers in all 50 states, prices quoted in Washington, D.C. are based on a 40-year-old driver with a clean driving history, varied credit levels, and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 for bodily injury liability for each accident
- $50,000 for property damage liability for each accident
- $100,000 Uninsured Motorist Injury Per Person
- 300,000 dollars for the injury of an uninsured motorist for each accident
- $500 collision deduction
- $500 full discount
To set minimum coverage limits, Bankrate used the minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles a year.
These are sample rates and should only be used for comparison purposes.
credit: Prices have been calculated based on the following insurance credit levels assigned to our drivers: “Poor, Average, Good (Basic), Excellent.” Insurance credit levels affect your official credit scores but are not dependent on this variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: CA, HI, MA