Great Credit Score Can Save Drivers $783 Per Year, CarInsurance.com Study Finds

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CarInsurance.com finds that maintaining a credit score over 750 can save drivers $783 per year and almost $23,000 in auto insurance costs between ages 25 through retirement, at age 65.

If you maintained a good credit score from the time you turn 25 to the time you retire, you’d save $22,815 over the average premium for people with similar driving records.

Drivers with credit scores over 750 save an average of $783 a year on insurance premiums, a CarInsurance.com study reports.

Credit scores can range from 300 to 850, and the average FICO credit score is about 680. Scores above 750 represent the pinnacle of financial responsibility. Roughly 40 percent of consumers maintain credit scores in that range. For their diligence, drivers with great scores pay much less for car insurance. On average, CarInsurance.com finds that drivers with great credit can save almost $23,000 on car insurance throughout their adult lives.

The average young adult age 25 to 34 with a clean driving record and full coverage pays $1,938 a year for auto insurance. Those with a credit score over 750 pay an average of $1,155, a savings of 40 percent, according to CarInsurance.com data.

“That kind of money really adds up,” says Des Toups, senior managing editor of CarInsurance.com. “If you maintained a good credit score from the time you turn 25 to the time you retire, you’d save $22,815 over the average premium for people with similar driving records.”

Though credit scores and insurance rates are highly correlated, insurers have their own scoring models, using the same data that other credit scores do, that are weighted to emphasize risk rather than creditworthiness.

Drivers in other age brackets save similarly large amounts when they have good credit scores. Drivers under age 25, who often lack a credit file in their early financial lives, are penalized more for lack of credit history than they are for a low score.

According to CarInsurance.com, the following are average annual lowest car insurance premiums by age and credit score:

Average premium for drivers age 16 to 24 -- $3,152

  •     Credit score above 750 -- $2,515
  •     Credit score of 650 to 749 -- $2,387
  •     Credit score of 500 to 649 -- $2,692
  •     No credit file -- $4,191

Average premium for drivers age 25 to 34 -- $1,938

  •     Credit score above 750 -- $1,155
  •     Credit score of 650 to 749 -- $1,658
  •     Credit score of 500 to 649 -- $2,023
  •     No credit file -- $2,182

Average premium for drivers age 35 to 44 -- $1,818

  •     Credit score above 750 -- $1,127
  •     Credit score of 650 to 749 -- $1,632
  •     Credit score of 500 to 649 -- $1,906
  •     No credit file -- $2,048

Average premium for drivers age 45 to 54 -- $1,614

  •     Credit score above 750 -- $1,032
  •     Credit score of 650 to 749 -- $1,449
  •     Credit score of 500 to 649 -- $1,729
  •     No credit file -- $1,787

Average premium for drivers age 55 to 64 -- $1,446

  •     Credit score above 750 -- $968
  •     Credit score of 650 to 749 -- $1,337
  •     Credit score of 500 to 649 -- $1,599
  •     No credit file -- $1,447

Average premium for drivers age 65 and over -- $1,461

  •     Credit score above 750 -- $1,057
  •     Credit score of 650 to 749 -- $1,512
  •     Credit score of 500 to 649 -- $1,727
  •     No credit file -- $1,656

Methodology
CarInsurance.com delivers thousands of affordable car insurance quotes per week through its online comparison tool. The study compared the lowest rates available for 42,809 single-driver policies insuring one car with liability, comprehensive and collision coverage when the driver reports no history of violations or accidents.

Read about how great credit saves you $22,815 on car insurance and see the data chart on premium savings per age group.

About CarInsurance.com
CarInsurance.com has been offering drivers expert advice about car insurance and how to shop for it since 2003. Using a combination of industry expertise and information drawn from thousands of online quotes delivered without obligation each month, CarInsurance.com is a source for unbiased answers and data about what consumers should expect from an insurance policy. CarInsurance.com provides consumers with the ability to compare car insurance quotes online and to purchase a policy online in minutes. CarInsurance.com is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to research, find and select the products, services and brands that best meet their needs. The company is a leader in ethical marketing practices. For more information, please visit QuinStreet.com.

Jessica Cultra
479-739-2690            
jcultra(at)carinsurance(dot)com

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