"Credit has become one of the large driving factors (in determining the price of your premium)," McMurtrie says. "Better credit typically translates to lower rates."
According to a spokesman for the National Association of Mutual Insurance Companies, most states allow insurance companies to factor credit scores into their pricing formulas. Hawaii and California are the only states that ban this practice with car insurance.
McMurtrie says other variables factor in, too. Those factors can include age, gender, marital status, how long you've been driving, how frequently you use your car, and whether the car comes with safety features such as antilock brakes and air bags.