According to study Texas Auto Premiums can vary up to 50%

With car-buying season hitting full gear following impressive Memorial Day Weekend sales, WalletHub released its 2016 Car Insurance & Credit Scores Report, which examined the extent to which major auto insurers use credit data in policy pricing. {{more:[Read more]}}

Some of their finding include:

• Car insurance premiums in Texas can fluctuate by 50% based on credit score.

• People with no credit pay an average of 53% more for car insurance than people with excellent credit, with some states seeing fluctuations as high as 122%.

• Farmers Insurance appears to rely on credit data the most, causing a significant cost disparity for customers across credit levels, while GEICO uses it the least.

• GEICO uses credit data in 59% of the states in which it operates, while Progressive uses credit data in all of the states it?s allowed to.

• Travelers is the most transparent about its use of credit data in quote generation, while State Farm is the least.

If you are interested in the full report you can go to 2016 Car Insurance & Credit Scores Report.

 

Disclosure: WalletHub is a personal finance website that frequently publishes finacial reports of general interest including the Best & Worst in a number of category i.e. best places for your health, taxes, small cities, etc.