Michigan, New Jersey and Arizona top the list of worst states for bad credit drivers. Bad credit can increase auto insurance rates more than an accident.
Foster City, CA: January 16, 2019 – CarInsurance.com, a one-stop destination for unbiased, expert advice on car insurance, released new research today ranking the worst states for insurance rates for drivers with bad credit. The findings highlight the average percentage increase in car insurance rates for drivers with poor credit, compared to those with good credit, in the 47 states where credit is a factor in insurance rates.
Michigan (167 percent increase) tops the list of worst states for bad credit drivers by a wide margin. Auto insurance rates in that state are almost one-third higher than the next one on the list. The average car insurance increase for a Michigan driver with bad credit is nearly $4,000.
The top five worst states for insurance rates for drivers with bad credit, as a percentage compared to the rates paid by drivers with good credit in each state, includes: