Car Insurance After Identity Theft
What impact does identify theft have on your car insurance rates?
Identity theft and car insurance
An often-overlooked byproduct of identity theft is its impact on auto insurance rates. Identity theft can have major ramifications on one's credit score, in turn leading to inflated auto insurance premiums. Let’s explore what can happen to your car insurance after identity theft and what you can do to save money in this difficult circumstance.
Car insurance coverage against identity theft
Most car insurance policies offer no coverage against identity theft. However, you can find protection via a renters' or homeowners' insurance policy. By adding an identity theft “rider” — or “endorsement” — to your agreement, you can earn reimbursement for losses up to a certain amount.
This coverage, which typically costs between $25 and $50 per year, might be unnecessary. Most banks and credit card companies protect against identity theft by covering any corresponding losses. If you’re interested in adding an identity theft rider to your property insurance policy, make sure you’re not already covered by your bank or credit card company.
How does identity theft affect credit score?
The only way in which identity theft impacts car insurance is through its impact on your credit score. Unless you live in California, Hawaii, or Massachusetts, your credit score plays a major role in determining your car insurance rates. Historical data and research by the Federal Trade Commissions show drivers with poor credit file more expensive claims, and file claims more frequently.
While your credit score might only be low because of identity theft, a car insurance company might not make an exception based on these circumstances.
Cheapest car insurance companies for bad credit
Using our base user profile, we pulled rates from popular insurance companies to see which offered the cheapest auto insurance for drivers with low credit levels.
| Company | Avg. Annual Premium |
|---|---|
| Allstate | $3,434 |
| Farmers | $2,724 |
| GEICO | $2,174 |
| Nationwide | $1,984 |
| Progressive | $3,716 |
| State Farm | $4,126 |
| USAA | $2,393 |
Nationwide is the cheapest company for a driver with poor credit. With bad credit, a policy from Nationwide costs $992 for a standard six-month policy ($165 per month).
| Company | Avg. Annual Premium |
|---|---|
| Allstate | $2,743 |
| Progressive | $2,354 |
| State Farm | $2,127 |
| Farmers | $2,080 |
| GEICO | $1,707 |
| Nationwide | $1,683 |
| USAA | $1,580 |
USAA and Nationwide are the cheapest companies for the "fair" credit tier (the classification just above "poor"). For those who don't qualify for USAA coverage, a Nationwide policy costs an average of $140 per month — or $841 for a six-month policy. At the end of the day, your best bet for finding car insurance is to assess as many companies as possible. Enter your zip code below to get started.
Compare quotes from over 100 providers.
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.