Car insurance can be expensive if you have bad credit. Car insurers rely on credit tier as a major rating factor, setting policy prices based partially on drivers’ credit histories. Because car insurance companies rely on data showing drivers with poor credit are more likely to file car insurance claims, they account for for that added risk by charging more expensive rates.
Your car insurance costs with a low credit score depends on which company you choose, where you live, and other rating factors. We've gathered below typical insurance premiums for drivers with bad credit in major Iowa cities, along with rates from popular car insurance companies, plus a few tips to save on auto insurance if you have a bad credit score in Iowa.
Iowa drivers pay an average penalty of $874 per year for having a "worst"-tier credit score. Drivers in the "poor" or "below fair to poor" credit tiers will also face more costly-than-average auto insurance rates.
|Credit Tier||Average Annual Rate in Iowa|
|Below Fair to Poor||$1,529|
|Average — All Credit Tiers||$1,015|
Your auto insurance rates can also fluctuate based on the precise area in which you drive. Car insurance companies rely on your address to estimate how likely you are to file an insurance claim: the more claim-prone your area,, the more you'll pay for insurance.
Listed below are major Iowa cities and their typical car insurance costs for drivers with poor credit ratings.
|City||Average Annual Rate — Worst Credit||Average Annual Rate — Poor Credit||Average Annual Rate — Below Fair to Poor Credit|
Another factor contributing to how much you pay for auto insurance is the company you buy from. Every auto insurance company rates its policies differently, giving rating factors varying weights in their pricing calculations. Credit can be a primary price differentiator between insurance companies. In Iowa, the most affordable major insurance company with bad credit is GEICO, which offers a discount of $236 annually over the second-cheapest company, Grinnell Select Auto Insurance.
See prices from leading auto insurance companies in Iowa for drivers with bad credit.
|Company||Average Annual Rate — Worst Credit|
|Grinnell Select Auto Insurance||$1,400|
If you're dealing with the difficulty of buying car insurance with a bad credit history, remember these tips: