Questions to ask your insurance agent

Katie Dee on 2024-10-21

Questions to ask your insurance agent

Picture of Written by <a href="https://rateretriever.com/about/katie-dee/"><span style="text-decoration: underline;">Katie Dee</span></a>

Written by Katie Dee

Picture of Edited by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>

Edited by Alyssa DiCrasto

Last updated October 21, 2024

When you’re shopping for car insurance, working with an agent provides you with a wealth of information that can help make the process feel a little less overwhelming. But it’s important to know the right questions to ask your agent so they can help you understand your policy and ensure you’re getting the best policy for your needs.

We are here to help you nail down how to start the conversation with your car insurance agent.

What are my coverage options and what is the best one for me?

Getting an overview of your coverage options is the best place to start the conversation with your car insurance agent. There is so much that goes into nailing down the right policy, and having your car insurance agent talk you through all your options and answer any additional questions that come up is a good way to dive into the insurance shopping process.

After reviewing all the options you can choose from, you can start narrowing things down until you find the best coverage option for you. Your agent will be able to provide valuable guidance here and assist you in making an informed decision that will keep you protected on the road.

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How is my premium determined?

Learning how exactly car insurance companies set rates will help you ensure that you are not overpaying for your insurance. There are several aspects that providers consider when they are setting rates, including the car you drive, the state you live in, your driving record, and more. Speaking with an agent about all these different factors can help to give you an idea of what your specific premium will look like, so you can be sure you’re getting the best deal possible.

Even after you have selected a company and chosen a policy, having your agent there to answer questions and break down why you’re paying the amount that you are will help you feel confident in the choice that you made.

Am I eligible for any discounts?

This is a key topic to go over with your insurance agent. There are several discounts available for car insurance, and odds are you’re not aware of all of them (even the ones you qualify for).

Your car insurance agent can inform you of any applicable discounts that you may not have been aware of otherwise. Knowledge is power when it comes to saving money on car insurance, and with an agent in your back pocket, you’ll have access to all the discount knowledge you could ask for.

What is my deductible and how does it work?

In simple terms, a car insurance deductible is the amount of money you owe out of pocket when you file a claim before your insurance company kicks in to cover the rest. This number will be different for every driver and every policy, and your insurance agent can help talk you through nailing down the right deductible for you.

What are the exclusions and limitations of my policy?

When purchasing a car insurance policy, it is vitally important that you not only understand what is covered, but also what is not. Your insurance agent will be able to break down the intricacies of your specific policy and help you to understand any limitations it has.

Exclusions and limitations are an expected part of any car insurance policy, and understanding them can help you be better prepared for any possible financial burden you may take on when you need to file a claim.

What are my payment options?

Car insurance companies usually offer different options for payment, and your agent can help you understand what those options are. It is common to pay for insurance on a six-month cadence (meaning you pay for coverage twice a year). However, most companies offer you the option to choose other payment options like monthly or even yearly payments. Some companies even offer discounts if you pay for your policy in full annually.

How can I adjust my coverage in the future?

As your needs change, you can adjust your car insurance coverage accordingly. Whether you get a new car or need to add a new driver to your policy, knowing the ins and outs of how you can adjust your coverage is always a smart move.

Bringing this topic up with your car insurance agent is a great way to ensure that you are prepared to alter your coverage as needed. Having a base level understanding of this process from the jump will make the whole thing seem less daunting when the time to make changes actually comes around. Plus, when that time does come, your agent will be able to guide you through the entire process.

Frequently asked

What factors affect your car insurance rates?

There are dozens of factors that affect car insurance rates. Some of the most notable factors are your location, age, gender, credit score, driving record, claim history, vehicle type, coverage limits, coverage types, and deductible. Additionally, the car insurance company you select can affect your car insurance premium.

Does your lifestyle affect your car insurance?

There are several lifestyle-related factors that can impact the cost of your auto insurance policy. For example, if you have a long commute to work or take road trips frequently, you might pay more for car insurance than someone who drives less often. Similarly, if you live in a city or urban area, your rate might be higher than someone who lives in a rural area. However, factors like your job, hobbies, or health don’t have any impact on your car insurance.

How does where you live influence the cost of auto insurance?

Where you live has a significant impact on the cost of your car insurance policy. Insurance companies look at things like the severe weather risks in your area, the rate of vehicle thefts in your neighborhood, the number of uninsured drivers in your location, and the cost of car repairs and labor. If you live in an area with few risks, you will probably pay less for car insurance.

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What is an SR-22 Form?

Katie Dee on 2024-10-16

What is an SR-22 Form?

Written by Katie Dee

Edited by Alyssa DiCrasto

Last updated October 16, 2024

If you are a high-risk driver, you may be required to obtain an SR-22 Form – also known as an SR-22 Bond or a Certificate of Financial Responsibility – in order to obtain car insurance. Your insurance company files this form with your state’s Department of Motor Vehicles, and it serves as proof that you have the right amount of liability insurance for your state.

You may be considered a high-risk driver if you have been involved in several at-fault accidents, or have a history of severe violations like a DUI or a DWI, or even if you have a lapse in insurance.

How do I know if I need an SR-22?

It’s important to note that not every state requires drivers with serious infractions to acquire an SR-22 Form. As of 2024, if you live in Delaware, Kentucky, Minnesota, New Mexico, New York, North Carolina, Oklahoma, or Pennsylvania, you won’t need an SR-22 even after a serious driving violation.

If you’re in any other state, you will usually receive a court order to notify you if you are required to obtain an SR-22 Form from your insurance company. You can also talk with an insurance agent, and they can walk you through the process and ensure you’ve checked all your boxes.

Unfortunately, not every insurance company will want to cover a driver that requires an SR-22 because of the risk involved. That being said, you may end up needing to shop around for a new policy.

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Why would I need an SR-22?

Some reasons you might be required to get an SR-22 Form include:

You have a DUI, DWI, or other serious driving violation
You have been found driving without insurance
You have had a lapse in insurance
You have several traffic violations or at-fault accidents in a short time period
You are driving a car that is not properly registered
You need to reinstate a revoked or suspended license

While the rules and regulations around SR-22 Forms vary from state to state, the majority of these qualifying violations will look the same.

How much will an SR-22 cost me?

While the cost to file an SR-22 is typically pretty inexpensive (around $25), there will also be an impact on your car insurance premium. The severity of this financial impact is more about the infraction that led to the SR-22 than the form itself. Car insurance companies set rates based on a number of factors, including your driving record, so having severe infractions on your record will inevitably raise your rates.

For example, if you need to file an SR-22 Form because you got a DUI, the increase in your insurance costs will be a result of the DUI, not the SR-22.

How long will I need an SR-22?

The duration of your SR-22 requirement will vary depending on your state as well as the infraction that led to it. On average, an SR-22 Form is required for 2-3 years (as long as you maintain a safe driving record in that time period), but your state’s DMV will be able to let you know the exact length of your requirement.

Frequently asked

What factors affect your car insurance rates?

Does your lifestyle affect your car insurance?

How does where you live influence the cost of auto insurance?

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10 Emerging car insurance trends to look out for

Katie Dee on 2024-10-04

10 Emerging car insurance trends to look out for

Written by Katie Dee

Edited by Alyssa DiCrasto

Last updated October 4, 2024

The car insurance industry is a constantly evolving and innovative space. For consumers, it can sometimes feel impossible to keep up with all the new technology and coverage options available. That’s where we come in.

Staying in the know is one of the best ways for you to save money on your car insurance premiums, so we did the leg work and compiled a list of the most prevalent emerging insurance trends for you.

1) Usage-based insurance (UBI)

This is a type of car insurance that uses data about your driving habits to help personalize your premium. UBI looks at aspects such as how many miles you drive, when you drive, and where you drive, as well as safe driving habits like how fast you drive and how you brake and accelerate in order to assign you a rate that more accurately reflects your driving habits.

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2) On-demand car insurance

This type of insurance works best for drivers who need coverage but don’t need it for a full year (the length of most traditional policies). It allows you the flexibility to pay for coverage when and how you need it.

3) Pay-per-mile insurance

Pay-per-mile car insurance allows you to pay for coverage based on how many miles you drive. This kind of insurance could be right for you if you need coverage on a car that you don’t drive regularly because it could help to save you big on your rates.

4) AI and automation

Insurance companies have started to integrate AI technology into their claims processing, customer services response, and risk assessment. This technology allows insurance companies to more quickly and efficiently handle repetitive processes and answer routine questions. This is a benefit to you because it helps to improve customer services such as getting your questions answered quickly and speeding up the whole claims process.

5) Advanced safety features

As driver-assistance systems in vehicles get more and more advanced, a lot of insurers have started offering discounts for drivers with cars that include these features. This encourages people to choose safer vehicles in order to save on their insurance rates, even if the vehicle itself might be more expensive up front.

6) Electric vehicles

As electric vehicles (EVs) gain popularity, insurers are adapting their policies to cover specific risks associated with EVs—like fire and electrocution. Insurance providers also may offer incentives for eco-friendly vehicles.

7) Predictive analytics

Insurers are leveraging predictive analytics to assess risk profiles and improve underwriting processes. The goal here is to more accurate set rates based on individual driver behaviors and conditions. Ideally, this will make car insurance fairer as well.

8) Regulatory changes

Evolving regulations regarding data privacy and insurance practices are impacting how car insurance providers collect and use consumer data, increasing price transparency.

9) Connected Cars

As vehicles become smarter and more connected, the risk of cyber threats has increased. Because of this, insurers are starting to develop policies that address potential cyber vulnerabilities in connected cars.

10) Smart Contracts

Smart contracts are self-executing agreements that can automate different tasks in the insurance space. They are changing the way insurance companies go about policy enforcement, policyholder interactions, fraud prevention, and more.

Frequently asked

What factors affect your car insurance rates?

Does your lifestyle affect your car insurance?

How does where you live influence the cost of auto insurance?

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What car insurance coverage is right for you?

Alyssa DiCrasto on 2024-09-12

What car insurance coverage is right for you?

Last updated September 12, 2024

Written by Katie Dee

Edited by Alyssa DiCrasto

Finding the coverage you need

When it comes to car insurance, finding the right coverage can feel overwhelming. With so many options, it’s important to make sure you’re adequately protected without overpaying for coverage you don’t need. Whether you’re a new driver or simply reassessing your current policy, choosing the right car insurance is about understanding your personal situation and risk factors.

To make the process easier, we’ve created a simple flowchart that guides you step-by-step toward the coverage that’s right for you. Just follow along, and by the end, you’ll have a clearer idea of what you need. Let’s get started!

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Frequently asked

What factors affect your car insurance rates?

Does your lifestyle affect your car insurance?

How does where you live influence the cost of auto insurance?

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results.

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you.

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide.

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Top 10 Car Insurance Myths Debunked

Katie Dee on 2024-09-06

Top 10 Car Insurance Myths Debunked

Last updated September 6, 2024

Written by Katie Dee

Edited by Alyssa DiCrasto

1) Your credit score doesn't impact your insurance rate

While credit score might not feel relevant for car insurance rates, as of 2024, California, Hawaii, and Massachusetts are the only states where credit score is not considered a rating factor. If you live in any other state, insurance companies will use your credit score as an indicator of risk, and it will impact your premium. In fact, drivers with excellent credit pay an average of 17% less for car insurance while those with poor credit pay 91% more.

2) Red cars cost more to insure

The car you drive does impact the price you’ll pay for insurance. However, the color of your vehicle will not impact your insurance rates. Insurance companies look at aspects such as the make and model of your car as well as your driving record to set rates. The only time you would need to disclose the color of your vehicle to your insurance company is if you have a custom paint job you want your insurance to cover.

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3) All insurance companies provide the same coverage

The truth is, no two insurance companies are built the same. Insurance policies from different providers can vary widely depending on factors such as coverage level, exclusions, and limits.

4) The more expensive a car, the pricier it is to insure

While newer, more expensive vehicles usually cost more to insure, the cost to repair and replace parts matters much more than the purchasing price of a vehicle when it comes to insurance rates. Additionally, newer cars sometimes have safety features or qualify for other discounts can bring insurance costs down.

5) You only need state-minimum liability insurance

While most states enforce a minimum coverage level for liability insurance, it likely will not be enough if you are involved in an expensive accident. Opting for only the minimum required insurance means that you will probably end up paying more out of pocket in the event of an accident.

6) Comprehensive insurance covers everything

Contrary to its name, comprehensive insurance is not really comprehensive. Comprehensive coverage is designed to cover incidents that are not covered by other aspects of your insurance policy, but it does not cover everything. For example, comprehensive coverage takes care of collisions with an animal, weather damage, and fire damage, but doesn’t cover collisions with other vehicles or accidents involving an uninsured motorist.

7) You can negotiate your premium

Unfortunately, negotiation isn’t an option when it comes to car insurance premiums. Insurance companies have a rating system that they use to determine what different drivers’ premiums will look like. This system is approved and regulated by state insurance departments, and so premiums are not negotiable.

However, you can control your rate by comparing prices from different insurance companies or by minimizing your risk so insurance companies feel more comfortable assigning you a lower premium.

8) Car insurance quotes are exactly what you will pay

While quotes can get pretty close, they are not the exact amount you will pay for auto insurance. Quotes serve as an estimate of what you can expect to pay based on the information you provide to a carrier. It is not the same as your rate, which is the exact amount that you will pay for car insurance. Once you decide to buy from a certain company, they will write you a policy and give you your final premium price.

9) A no-fault accident will never impact your rates

Unfortunately, any time you submit a claim to your insurance company there is a chance that your premium will increase, even if you are not the one at fault. However, if the at-fault drivers’ coverage takes care of everything and you do not need to submit a claim to your insurance company, your rates should not be affected.

10) Car insurance covers any item stolen from your car or damaged in an accident

More often than not, car insurance does not cover theft or damage of personal belongings. The best way to protect your valuable belongings is by adding them to your home or renters insurance policy.

Frequently asked

What factors affect your car insurance rates?

Does your lifestyle affect your car insurance?

How does where you live influence the cost of auto insurance?

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results.

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide.

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2023 vs. 2024 Insurance Rates

Kelsie Johnson on 2024-07-18

Home » Blog

2023 vs. 2024 Insurance Rates

Written by Katie Dee

Edited by Alyssa DiCrasto

Published on 2024-07-18

Read time: 3 min

Have you noticed your car insurance rates going up lately? It’s not just you—many drivers have seen their premiums increase significantly over the past year. Today, the average cost of car insurance sits at a whopping $2,049 per year, a 12.4% increase from 2023 when the national average was an estimated $1,823 annually.

But that’s not all that has changed. The least expensive state to insure a vehicle also looks different this year than it did last year. In 2023, the cheapest state for car insurance was Vermont, with an average annual premium of $1,078. However, in 2024, the cheapest state is Wyoming with an annual premium of $1,172.

Several factors have contributed to this rise in rates. Firstly, insurance always lags behind the rate of inflation. This means that in the wake of high inflation, insurance rates will follow suit. Second, the cost of repairing vehicles has escalated with the advancement of car technology. Newer cars tend to have more sophisticated features, which can make repairs pricier. Lastly, severe weather events are occurring more frequently. This increases the likelihood that a policyholder will file a claim due to weather damage, and thus, increases the financial risk for insurance companies.

Knowing how quickly insurance rates can change, it’s always wise to keep an eye on your insurance premiums and periodically shop around to compare quotes. Staying on top of your rates and comparison shopping could help you to find a better deal at a new provider that works with your current driving habits and budget.

What happens to car insurance when you move out of state?

Kelsie Johnson on 2024-07-12

Moving to a new state can affect your auto insurance requirements and costs. Here’s what you need to know about car insurance when moving to a different state.

Car Insurance & Marriage

Kelsie Johnson on 2024-05-23

Home » Blog

Car Insurance & Marriage

Written by Katie Dee

Edited by Alyssa DiCrasto

Published on 2024-05-23

Read time: 3 min

Embarking on the journey of marriage doesn’t just mean sharing a life together—it also means sharing in the perks, including surprising savings on car insurance. Rate Retriever’s research has shown that tying the knot can lead to discounts of up to 53% on auto insurance premiums.

Why the significant savings? Insurance companies often view married couples as lower risk, attributing it to a variety of factors such as shared financial responsibilities, stability, and statistically safer driving habits compared to single individuals.

So, as you exchange vows and start your journey as a married couple, don’t forget to double check your car insurance rates. According to our research, the cheapest national company for married couples in 2024 is Progressive, with an average annual premium of just $1,307, and Nationwide and Auto-Owners Insurance not far behind.

The amount of savings you achieve will – of course – depend on several factors including how many cars are on your policy, the state you live in, and the auto insurance company you are working with. It is also important to remember that not every state takes marital status into account while setting rates.

Be sure to keep your car insurance company in the loop about this exciting life change and you may end up saving big because of it!

Hazard Insurance vs. Home Insurance

Kelsie Johnson on 2024-05-15

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Hazard Insurance vs. Home Insurance

Picture of Written by <a href="https://rateretriever.com/about/elizabeth-rivelli/"><span style="text-decoration: underline;">Elizabeth Rivelli</span></a>

Written by Elizabeth Rivelli

Written by Katie Dee

Edited by Alyssa DiCrasto

Published on 2024-05-15

Read time: 3 min

For homeowners, having a comprehensive home insurance policy is essential. It provides valuable protection in case your home gets damaged or destroyed in a covered event, like a windstorm, fire, or break-in. It also covers your personal items, liability, loss of use, and more.

One of the most common questions that homeowners have about home insurance is how it differs from hazard insurance. Home insurance and hazard insurance are related but they aren’t exactly the same. In this guide, we’ll explain the difference between hazard insurance vs. home insurance.

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How to save money on car insurance in California

Hazard insurance vs home insurance

Home insurance is a bundle of policies that cover your home and your personal items. A typical homeowners insurance policy includes dwelling insurance, personal property insurance, liability insurance, medical payments insurance, and loss of use insurance.

Hazard insurance, on the other hand, only covers the physical structure of your home. Hazard insurance is the same thing as dwelling insurance, and it’s included with every home insurance policy.

Is hazard insurance the same as home insurance?

Hazard insurance is not the same thing as home insurance. However, hazard insurance is a part of your homeowners insurance policy. When you purchase a basic home insurance policy, it automatically includes hazard insurance, which is more commonly called dwelling insurance.

The main difference between hazard insurance and home insurance is what’s covered. Hazard insurance only covers the physical structure of your home, and attached structures, like a garage. It doesn’t cover your personal items or your liabilities.

Homeowners insurance is a package of policies that protects more than just the physical structure of your home. The hazard insurance portion will cover your house, but you also get coverage for personal property, personal liability, guest medical payments, and loss of use.

When do I need hazard insurance?

Every homeowner can benefit from having home insurance. If you have a mortgage, most lenders require homeowners to carry a standard homeowners insurance policy that includes hazard insurance.

If the physical structure of your home gets damaged in a covered peril, you will file a claim under your hazard insurance. Once the claim is investigated and approved, you will receive a payout for the estimated cost of repairs.

Without hazard insurance, you would have to pay to repair or rebuild your home entirely out-of-pocket.

When do I need home insurance?

Home insurance is essential for every homeowner. You probably need home insurance to satisfy your lender’s requirements, but it also provides peace of mind.

Home insurance covers a variety of risks that you can face as a homeowner, including damage to the structure of your home, damage to personal items, third-party liability claims, guest injuries, and temporary living expenses if your home gets damaged or destroyed.

If you want to file a personal liability claim, personal property claim, medical payments claim, or loss of use claim, you need to have home insurance. Hazard insurance will only cover claims related to structural home damage.

What does hazard insurance cover?

Hazard insurance covers the physical structure of your house. It also covers structures attached to your home, like a garage or porch. It covers features like the walls, roof, ceiling, and foundation, as well as major home systems, like HVAC and plumbing, and permanent fixtures, like cabinets and large appliances.

Depending on your home insurance policy, your hazard insurance will either cover named perils or open perils. Named perils are specific losses that are listed in your policy. Open perils means that you are covered against any loss that is not explicitly excluded in your policy.

Some of the most common perils that hazard insurance will cover include:

Fire, lightning, and smoke
Windstorms
Rain and hail
Weight of snow and ice
Explosions
Accidental discharge of water or steam
Damage from vehicles or airplanes
Falling objects
Break-ins
Vandalism

Keep in mind that hazard insurance almost never covers damage from earthquakes or flooding, even if you have an open perils policy. If you live in an area that is prone to earthquakes or floods, it’s a good idea to purchase separate earthquake insurance and flood insurance policies.

How to save money on homeowners insurance

There are a variety of ways for homeowners to save money on their home insurance policies. Here are some tips for getting a lower premium:

Look for companies that offer discounts: Many home insurance companies offer discounts that can reduce your premium. Look for insurers that have multiple discounts you can qualify for to maximize your savings.
Choose higher deductibles: Some home insurance coverages require a deductible. Choosing a higher deductible will result in a lower monthly premium, and vice versa. Be sure you are able to afford the higher deductible comfortably out-of-pocket in the event you need to make a claim.
Install home safety features: You can often save money on your home insurance policy if you install a home security system, fire alarm system, fire sprinkler system, or other safety equipment, since a lot of insurance companies offer discounts for these safety features.
Bundle your policies: If you bundle your home insurance with another policy, like car insurance or life insurance, you can often save money.
Pay in full: Many insurers provide a small discount for paying your annual home insurance premium upfront and in full.
Shop around: Before you purchase home insurance, shop around and compare quotes from a few different companies. To get started, you can take our short quiz to see how much you can expect to pay for home insurance.

FAQs

Why was hazard insurance added to my mortgage?

Most mortgage lenders require homeowners to have hazard insurance. This protects the lender’s financial interest in your home before it’s paid off. Before you close on your home, your lender will ask to see proof of home insurance with hazard coverage. If you file a hazard insurance claim, the mortgage lender is typically responsible for holding the money to ensure that the proper repairs are made to their standards.

What is another name for hazard insurance?

Another name for hazard insurance is dwelling insurance, which is more commonly used. Hazard insurance and dwelling insurance may be used interchangeably since they reference the same thing.

What is hazard insurance?

Hazard insurance is a type of insurance that covers the physical structure of your home, as well as the roof and foundation. Hazard insurance also covers attached structures, major home systems, and permanent interior features, like cabinets, flooring, walls, and large appliances. Hazard insurance is included with every standard home insurance policy.

How does credit score impact car insurance cost in Georgia?

Kelsie Johnson on 2024-04-17

How does credit score impact car insurance cost in Georgia?

Written by Elizabeth Rivelli

Written by Katie Dee

Edited by Alyssa DiCrasto

Published on 2024-04-17

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.

Is your state expensive for car insurance?

Subaru is the cheapest popular brand for car insurance

How to save money on car insurance in California

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

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.

Learn about the different types of car insurance

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.

Read our full earnings disclosure