How does credit score impact car insurance cost in Georgia?
How does credit score impact car insurance cost in Georgia?
Written by Elizabeth Rivelli
Written by Katie Dee
Edited by Alyssa DiCrasto
Read time: 3 min
In Georgia, car insurance companies are allowed to use credit-based insurance scores. That means your credit score can have a direct impact on the cost of your auto insurance policy. In general, Georgia drivers with bad credit pay higher rates for coverage. Drivers with good credit often pay lower insurance premiums because they pose less risk.
No matter your personal credit score, it’s important to understand how your credit may impact your car insurance premium in Georgia. In this guide, we’ll discuss car insurance by credit score in Georgia and share average premiums from some of the best companies in the state.
Does credit score impact car insurance in Georgia?
Your credit score can have a significant impact on the cost of car insurance in Georgia. According to our recent rate data, the average annual cost of auto insurance in Georgia is $1,897. Drivers with excellent credit pay about 22% less than the statewide average, whereas drivers with poor credit pay nearly 68% more than the statewide average rate.
For example, in the beginning of 2024, the average cost of full coverage car insurance for a Georgia driver with excellent credit is $1,485 per year. For a driver with good credit, the average premium is $1,995 per year. Georgia drivers with bad credit pay an average of $3,191 per year.
Why does credit score impact car insurance?
The main reason why credit score impacts car insurance rates in Georgia is because it’s an indicator of risk. From an insurance company’s perspective, people with poor credit are riskier to insure and are more likely to file claims. To offset that increased risk, insurers charge higher rates for drivers with bad credit.
While Georgia car insurance companies are allowed to use credit-based insurance scores, not every state allows this. For example, in California, Hawaii, Maryland, and Massachusetts, car insurance companies are banned from considering a driver’s credit score when calculating their premium. A handful of other states prohibit insurers from charging higher rates to drivers that have no credit history.
Car insurance for bad credit in Georgia
Georgia drivers with bad credit can expect to pay above-average rates for car insurance. However, credit is only one factor that can affect premiums. Your ZIP code, age, driving record, and vehicle type are some of the other factors that can affect the cost of auto insurance.
In addition, the insurance company you choose can also impact how much you’ll pay. Based on our analysis of recent rate data, we found that Nationwide is the cheapest provider for drivers with poor credit and USAA is the cheapest for drivers with good credit.
How can I save on car insurance in Georgia if my credit is bad?
If you have poor credit, there are plenty of ways to lower your car insurance premium. Here are some tips for finding the cheapest coverage if you have bad credit in Georgia:
- Improve your credit score: If you have poor credit, improving your score will lower your premium. Improving your score by even a few points can reduce your annual rate. Keep in mind that if you are able to boost your credit score, you probably won’t see any changes to your insurance premium until the policy renews.
- Look for discounts: Most car insurance companies offer discounts that can lower your rate. Some of the most common discounts include savings for good students, safe drivers, taking a defensive driving course, paying your premium in full, and insuring a car with certain safety features.
- Bundle your policies: You can often save a significant amount of money when you bundle two or more insurance policies together, like car insurance and home insurance or renters insurance.
- Raise your deductibles: For policies that require a deductible, like collision insurance and comprehensive insurance, raising your deductible will lower your monthly premium. However, make sure to choose a deductible you can afford in the event of a claim.
Another way to find affordable car insurance in Georgia is to shop around. Comparing quotes from several insurance companies can help you find the cheapest policy for your situation, credit score, and coverage needs. If your credit score improves, it’s a good idea to re-shop for insurance quotes to see if you can find a better rate from a different carrier.
To find cheap car insurance in Georgia, you can use our online quote comparison tool.
FAQs
What credit score do you need for car insurance?
There is no specific credit score that is needed to get car insurance. However, your credit score can impact how expensive your car insurance premium is in Georgia (and in most other states). Drivers with good credit usually pay the lowest rates for insurance because they are less risky to insure. People with bad credit are often assigned higher rates. If you improve your credit score, you can usually secure a lower monthly car insurance premium.
Why is Georgia auto insurance so high?
The average annual cost of car insurance in Georgia is $1,884, which is less than the U.S. national average rate of $2,049 per year. There are a few reasons why the cost of car insurance in Georgia is higher than in some other states. For instance, Georgia has a very high population density and it has some unique weather risks, like hurricanes. Additionally, Georgia is ranked 10th in the U.S. for states with the highest number of vehicle thefts.
Frequently asked
How does the insurance company determine my rate?
Car insurance companies determine how much they charge you based on your driver profile. Factors that can impact your rates include:
- Demographics – your age, home ownership, credit score, and more
- Your driving history – how long you’ve been driving, traffic violations, and more
- Your car – make, model, and year
- Where you live – state and zip code
- How much coverage you want
Read more about the factors that impact your car insurance rate
How do I switch my car insurance?
Switching your car insurance is easy, even if you are in the middle of your current policy.
Here are some helpful tips to consider to switch your car insurance:
- Decide what coverage you want with your next policy
- Check if your current provider charges cancellation penalties or fees
- Compare prices from at least 3-5 insurance companies (Rate Retriever makes this easy, giving you personalized rates from the top companies near you)
- Get a final quote from at least one of your choices
- Cancel your current policy once your new one begins
How much car insurance do I need?
The answer to this question depends on where you live and what you would like to cover.
Each state has its own minimum requirements on the type and amount of insurance needed. When you’re trying to determine what and how much car insurance you need, you can start by reviewing your state’s requirements.
Find out what’s required in your state
Once you review your state’s minimum requirements, you may find that you want additional coverage. For example, sometimes owners of new cars want comprehensive coverage to insure their car from natural disasters and vandalism, even though comprehensive coverage isn’t required by their state. To figure out what insurance you want, you can review the different types of insurance to decide what makes the most sense for your situation.
How is Rate Retriever different than other insurance websites?
The biggest difference between Rate Retriever and other comparison sites is that we are a free and impartial research tool NOT an insurance marketplace. This means you can’t purchase a policy directly through RateRetriever.com, but you can use our tool to independently research your options and seamlessly connect with the provider you choose.
Unlike other insurance comparison sites, we:
- Use third-party data to give you more accurate rate estimates instead of inaccurate, suspiciously low quotes to get you in the door
- Do not limit your list of results to paid advertisers
- Do not collect your email or phone number before we let you see your results
- Give you results after just five questions (however, your results will be more accurate if you complete your profile)
We like to think that Rate Retriever is your insurance companion, not just another insurance comparison site. Our values guide everything we do, which is why we strive to offer transparent, trustworthy insurance tools.
How can I get cheaper car insurance?
There are many ways you can try to get cheaper car insurance. The first is simply to get quotes from multiple providers. This will help you determine if you’re currently receiving the cheapest rates based on your needs and driver profile. Rate Retriever makes the comparison process easy.
Sometimes, the reason your car insurance is so expensive is due to your driver profile. For example, drivers under 20 years old usually pay more for insurance than more experienced drivers, and drivers with a recent at-fault accident or traffic violation typically pay more.
There are ways to lower the cost of your insurance such as taking a defensive driving course. Check with your provider to see if there are any discounts you qualify for or can reasonably earn.
How does Rate Retriever make money?
Rate Retriever works with national and local insurance providers to provide our users with a seamless insurance shopping experience. We may earn a commission from our insurance provider partners when you click on a link, call, or purchase a policy from one of the providers listed on our site. That said, we’re committed to providing you with accurate, bias-free information, and we do not allow our partnerships to limit the results or influence the information we share with you.
We do not sell your personal information, charge you for using our tools, or sell you insurance policies. Additionally, should you choose to purchase a policy from one of our partners, the price you pay will not be adversely affected.
