According to the Insurance Information Institute, numerous studies have shown that drivers with low credit scores are more likely to file a claim than drivers with high scores. Unless you live in California, Hawaii or Massachusetts, your credit score is impacting what you pay for insurance — be it car, homeowners or even life insurance.
Even though your credit score does affect your insurance premium, this does not mean you should begin shopping for the best car insurance for bad credit in Connecticut. The best companies for good credit drivers are likely going to be the best car insurance companies for bad credit drivers, too.
Average cost of full coverage car insurance in Connecticut by credit
|Provider||Poor credit||Average credit||Good credit||Excellent credit|
Best car insurance in Connecticut with bad credit
A driver with poor credit in Connecticut pays $1,293 more for car insurance than the national average for a good credit driver ($1,674).
When calculating a customer’s premium, a vast majority of insurance companies refer to what is known as a credit-based insurance score, which they purchase from either FICO or LexisNexis. In these reports, customers are either labeled as:
If these seem familiar, there is a good reason. The data used is the same information received from either your TransUnion, Experian or Equifax credit report (aka The Big Three). Information such as on-time payments, amount of debt and types of credit are taken from these reports and used to gauge how likely you are to get into an accident and file a large claim.
However, rather than deny you access to a loan or line of credit, a credit-based insurance report will simply increase the price of your premium. If you are denied coverage, it will be for another reason, such as too many at-fault accidents or DUIs.
Why does my credit affect my car insurance rates in Connecticut?
The reason why a low credit score is associated with a higher risk will likely never be known. Nonetheless, a correlation between the two data points has been proven time and again. Most recently, both the FTC and the Texas Department of Insurance have both validated the relationship between the two in recent studies. In the FTC report, a study conducted by MetLife is cited where it was found that low credit drivers filed 50% more claims than good credit drivers.
If you have a poor credit score, you should strive to improve it. Not only will doing so help you out with interest rates, but it will also help lower your insurance premiums, too. However, because insurance companies write 6 or 12 month policies, you may have to wait longer for them to review your information than you would like. This is why many drivers often choose to switch providers. A new provider will see your most up-to-date credit-based insurance score and will give you a premium that reflects the new data.
What other factors impact auto insurance rates in Connecticut?
Many factors besides your credit-based insurance score affect how much you pay for car insurance. The true cost of auto insurance often comes down to the following factors:
- Location: Some zip codes receive a significant more amount of claims than others. This can be for many reasons, such as natural disasters, theft or accidents. Regardless of the reason, because you live there, you will be more likely to file a claim yourself one day. If you were to move, you would likely lower your premium. For example, drivers who move to Orlando from Tampa save an average of $450 a year.
- Vehicle Type: An expensive new car costs more to insure because it costs more to both work on and replace. Buy a mid-range vehicle instead (that also has a solid safety rating), and you will save money. For example, Honda Odysseys cost an average of $1,454 to insure. A BMW 330i, on the other hand, costs around $2,225 to fully insure.
- Driving history: After a single DUI arrest, with no other significant violations on your record, you can expect an 86% in your premium. At-fault accidents and speeding tickets will both increase your premium by substantial margins, too.
How to get cheap car insurance in Connecticut with poor credit
There are many things a driver looking for cheap car insurance in Connecticut can do to pay less. Besides working on your credit score, look into doing the following:
- Shop around: The most important thing to do when looking for bad credit car insurance in Connecticut is to shop around. Though each company you will apply to will likely refer to your credit-based insurance score, each company weighs its importance a little differently. This is why you can get two completely different premiums from companies offering the exact same type of policy.
- Compare discounts: Just as two companies can offer different premiums for the same policy, different companies can also offer different savings for the same discount. If you are looking to save money, it is important to find an insurance provider that offers multiple discounts, but equally important is to find a provider that offers discounts you can take advantage of and who will give you significant savings with those discounts. To get the bottom line for each discount, you may need to speak with an agent.
- Increase your deductible: You can save money each year by increasing your deductible. The drawback is you will receive less of a payout after an accident. We recommend looking at your budget — it may not be necessary to choose the highest deductible you can.
- Drive an older car: Car insurance for poor credit in Connecticut can largely be helped by driving an older, dependable and safe vehicle. Drive the newest and the brightest, and you will pay more for car insurance. The reason? New cars cost more to repair and to replace.
- Continue driving safely: Your insurance premium is largely dictated by your driving record. Obey all traffic laws (including the speed limit and coming to a full stop at stop signs), and you will be less likely to receive a traffic ticket. As the years go by, your insurance company will recognize that you are a safe driver. If you need the extra incentive, choose an insurance company that offers a usage-based discount. Usage-based discounts analyze your driving habits through a smartphone app, and if the insurance provider likes what it sees it will potentially give you a discount.
Frequently asked questions
Will I get a credit check when I obtain an insurance quote?
Yes, but it will not hurt your credit score. A credit check only hurts your score when you are looking to take out a loan or line of credit with a lender. The type of credit check run by an insurance company is called a soft credit check (as opposed to a hard credit check).
Which company insures bad credit drivers?
All of them. Bad credit will not keep you from getting a policy, but it may increase the cost of your premium. Shop around. Not every company weighs the importance of strong credit the same way.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, varied credit tiers and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: CA, HI, MA