Best auto insurance in Georgia with bad credit

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Insurance companies use credit scores in setting car insurance premiums because data indicates that a person’s ability to manage financial affairs is often a good indicator of the likelihood of the driver generating more or less insurance claims. Carriers adjust premiums to address this assumed risk.

Most drivers will likely be subjected to credit inquiries when applying for auto insurance. All states with the exception of California, Hawaii and Massachusetts permit the practice.

Average cost of full coverage car insurance in Georgia by credit

Provider Poor credit Average credit Good credit Excellent credit
State average $3,143 $2,200 $1,982 $1,859
National average $3,873 $1,865 $1,674 $1,487

Best car insurance in Georgia with bad credit

In Georgia, a driver with poor credit will on average pay $1,469 more per year for full coverage than the average national driver with a good credit score.

Each car insurance company has a different tiering system for classifying drivers into the four categories (good, poor, average or excellent) according to their credit scores. The “Big Three” credit rating services, Equifax, Experian and Transunion, use a somewhat different classification, as many as five tiers from poor to exceptional within the range of scores from 300 to 850.

This difference is based in part on the fact that insurance credit scores and financial credit scores are employed for very different purposes. The standard credit scores reviewed by banks and other lenders are designed to predict how likely it is for a borrower to be delinquent in paying a debt. Insurance scores, on the other hand, are designed to predict insurance losses.

Why does my credit affect my car insurance rates in Georgia?

While lenders review credit scores to evaluate the risk that a borrower will be late in paying or default on a loan, insurers review a variation of the financial credit score to assess whether a prospective insured is a responsible person and less likely to have accidents and file claims.

Car insurance companies are permitted to review credit scores in Georgia to assess risk and set premiums accordingly. Reviewing credit scores provides a shortcut look at key factors that reflect insurance risk – outstanding debt, length of credit history, healthy credit mix, payment history and excessive search for new credit. Every car insurance company assesses credit scores differently. This is why it is always important to research a number of car insurance companies and their available discounts and compare several quotes when selecting coverage.

There are certain times where it may make sense to search for a new carrier, particularly if you feel that your current carrier is not willing to adjust premiums based on improvements to your credit score. However, switching providers should be considered thoughtfully. For example, you would not want to switch in the middle of a claim against your current carrier. Ask several companies how they address credit issues and candidly acknowledge that you want to improve rates with your better credit. Once you have quotes, return to your current carrier for a last look.

What other factors impact auto insurance rates in Georgia?

Credit scores do impact car insurance premiums but not as much as some other factors. For example, in Georgia, a number of factors can have a significant impact on auto insurance rates, including :

  • Speeding ticket – In Georgia, this will increase your annual premium by $465.
  • Involved in an accident – Your annual insurance rate will increase by $957 in Georgia.
  • Lapse in coverage – You will see a $279 jump in annual premiums in Georgia.
  • DUI conviction – With this serious offense, in Georgia, your average annual premium will increase by $1,709.

In each of the four instances above the resulting premium increase in Georgia is higher than the average national premium increase for the same event.

How to get cheap car insurance in Georgia with poor credit

Although it can be discouraging to know that a poor credit score has impacted your car insurance premiums, there are steps that can be taken to find affordable coverage under these circumstances:

  • Above all else, shop around by looking at several auto insurers known for working with drivers with poor credit.
  • There are a number of practical steps to take immediately to start improving credit from setting up automatic payments for bills to stay on top of payments to taking out a short term loan to repay promptly.

FAQ

Will I get a credit check when I obtain an insurance quote?

When an insurance company reviews your credit, it is referred to as a “soft pull”. This means that the credit review will not appear as a “hard pull” credit check like those from a lender’s credit review. There will be no negative impact on your credit score.

Do all car insurance companies check credit?

Unfortunately, these days, most car insurance companies do check credit to help assess a driver’s insurability risk. Others that do not may in fact bump premiums to cover the risk of not knowing your score.

What is the cheapest car insurance policy if I have poor credit?

There is not one single insurer that will be best for everyone with poor credit. A great deal depends on other more serious factors as well, such as driving history or coverage lapses. Obtain quotes from a number of well respected companies who deal with credit problem coverage and compare.

Methodology

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

Written by
Rick Hoel
Insurance Contributor
Rick Hoel is an international business attorney and legal and insurance writer for Bankrate.com, Reviews.com and Accessibility.com. Over the last several years, he has covered topics dealing with personal and commercial insurance and technology and the law. Rick is General Counsel and Director of Risk Management and sits on the Board of Power Stow Americas Inc., a subsidiary of Power Stow A/S in Denmark, the world leader in the supply of tracked conveyor systems to the airline industry.