As car insurance costs surge, here’s why your credit score may be partly to blame

The cost of car insurance has significantly increased over the last year, roughly by 26%, according to Bankrate.

Many factors contribute to this rise, including inflation, leading to higher vehicle and parts prices, and severe weather claims.

Personal factors, like your credit score, can also affect your insurance costs.

In the United States, the current national average cost for full-coverage car insurance is $2,543 per year.

This cost varies depending on your location.

For instance, Detroit drivers face the highest insurance costs, around $5,687 annually.

If you have a teenage driver, you can expect higher premiums, nearly $2,878 more, ranking above violations like drunk driving.

Additionally, a poor credit score can cost you an average of $1,795 more compared to speeding tickets or gaps in coverage.

However, there are ways to manage these rising costs.

Not all states utilize credit as a factor in determining insurance premiums.

Additionally, improving your overall financial situation, paying down debts, and resolving delinquency issues can positively impact your credit score.

Furthermore, you can consolidate insurance coverage for multiple vehicles, homes, and other valuables to save money.

Adjusting your deductible or taking extra driving classes can also help reduce premiums.