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How does credit score impact car insurance cost in Georgia?

How does credit score impact car insurance cost in Georgia?

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
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
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. 

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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

Car insurance by age in Georgia

Car insurance by age in Georgia

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
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
Edited by Alyssa DiCrasto
Published on 2024-04-17

Read time: 3 min

Car insurance is a legal requirement for all vehicle owners in Georgia. However, the cost of auto insurance in the Peach State is different for every driver. Car insurance companies consider lots of criteria to calculate your unique premium, and your age is one of the most notable factors. 

If you’re in the market for car insurance, it’s helpful to understand how age can impact the cost of your coverage. In this guide, we’ll look at age and car insurance in Georgia, and share how car insurance premiums can change at different points in your life. 

How age impacts car insurance rates in Georgia

Age is one of the biggest factors that can affect the cost of car insurance in Georgia. In general, young drivers pay the most expensive rates and middle-aged adults pay the lowest rates. The average cost of car insurance is correlated to driving experience and risk levels, which is why newly licensed drivers often pay the highest rates. 

As drivers get older, their car insurance premiums usually start to drop, assuming they maintain a good driving record and clean claim history. If you have a complicated driving history or have filed multiple claims in a short period, your car insurance premium could increase as you get older. Once claims and traffic violations fall off your record, rates should decrease once again. 

While age is one of the most important factors that can affect car insurance rates in Georgia, there are many other factors that are also used to calculate your premium. To find the most affordable car insurance for your situation, it’s a good idea to compare rates. You can find cheap car insurance in Georgia using our online quote comparison tool. 

Car insurance for teens in Georgia

Car insurance for teens in Georgia is typically very expensive. The average cost of car insurance for a teen driver in Georgia on their own policy is $7,401 per year. That’s 118% higher than the statewide average cost of car insurance in Georgia. 

Teen drivers in Georgia pay extremely high car insurance premiums because they lack experience on the road. Newly licensed drivers are the riskiest to insure because they are more likely to make critical driving errors that can lead to serious collisions. 

Data from the Centers for Disease Control and Prevention (CDC) finds that drivers between the ages of 16-19 have a higher accident rate than drivers in any other age group. To offset the increased likelihood of a claim, insurers charge higher rates for young drivers.  

Adding a teenager to your policy in Georgia

If you are the parent or guardian of a teen driver and you want to add them to your policy, you will most likely see your car insurance premium go up. Based on our recent rate data, the average cost of adding a teen driver to an existing car insurance policy in Georgia is $9,917 per year. 

As the teen gets older and gains experience behind the wheel, your premium should decrease slightly. For example, you will likely see a bigger rate increase when you insure a 16-year-old driver and a smaller increase when you insure a 19-year-old driver. 

To offset the rate hike when adding a teen driver to your policy, it’s important to take advantage of discounts, such as good student discounts, defensive driver discounts, or payment-related discounts. Some insurers also offer telematics programs that track driving behavior and reward safe drivers with more affordable premiums.  

Car insurance for adults in Georgia

Adult drivers usually pay the lowest car insurance rates in Georgia. Our recent rate data shows that the average cost of car insurance for a 35-year-old in Georgia is $1,642 per year. That’s about 14% less than the statewide average for all drivers, which is $1,884 per year. 

 However, there are many factors that can affect car insurance rates for adult drivers in Georgia. For example, adult drivers who have a poor credit score will probably pay more than average for car insurance. Similarly, drivers who live in Atlanta or other urban areas will likely pay higher rates than drivers who live in more rural parts of the state. 

Car insurance for seniors in Georgia

It’s common for senior drivers in Georgia to pay slightly higher car insurance rates than middle-aged adults. As drivers get older, they are more likely to have impairments that can lead to driving errors and collisions. Due to the increased risk of insuring older drivers, insurance companies often charge higher rates for seniors.  

As with middle-aged adults, keep in mind that the cost of car insurance for seniors in Georgia depends on many factors besides age. Some of the ways that senior drivers can lower their premium include taking a defensive driving course, bundling policies, maintaining a clean driving record, insuring a car with advanced safety features, and paying in full. 

FAQs

What age does car insurance go down in Georgia? 

For most drivers in Georgia, car insurance rates start to go down around age 25. After this point, car insurance premiums usually decrease steadily over time, assuming the driver maintains a clean record and has no recent claims. 

What is the cheapest car insurance in Georgia for seniors? 

There isn’t a single cheapest car insurance company for senior drivers in Georgia. The cost of car insurance is personalized to each driver depending on factors like ZIP code, credit score, vehicle type, driving history, policy limits, and more. Seniors should compare rates from multiple different insurers to find the cheapest policy for their situation. 

What is the average car insurance in Georgia? 

The average cost of full coverage car insurance for all drivers in Georgia is $1,884 per year, or about $98 per month. To compare, the U.S. national average car insurance premium is $2,049 per year. However, keep in mind that car insurance rates are different for everyone, so your premium could be higher or lower than average depending on your driver profile, vehicle, and coverage needs. 

How can I lower my car insurance in Georgia? 

There are a variety of ways to lower your car insurance premium in Georgia. Many insurance companies offer discounts that can reduce your rate. Choosing a higher deductible can also lead to lower monthly payments. Having a good credit score and avoiding accidents and traffic violations will help you maintain a low rate overtime. 

Frequently asked

Why should I work with an auto insurance agent in Georgia?

In Georgia, local agents function as a resource to help make the insurance shopping process less stressful and – most importantly – to help you feel confident that you’re getting the best rate for the coverage you need. If you’re not sure whether or not working with a local agent is right for you, don’t worry, we have asked expert insurance agents to break down all the necessary information to help you decide.

Do you need insurance to register a car?

If your state requires proof of insurance for registration, and you don’t have coverage, the DMV won’t allow you to register the vehicle. In this article, we’ll explain how car insurance affects your vehicle’s registration.