Find affordable car insurance with bad credit by comparing rates.
It can be tough to find cheap car insurance if you have bad credit. Car insurance companies use credit score as a major rating factor, assigning premiums based in part on clients' credit histories. Because auto insurance companies use historical data showing those with poor credit are more likely to file car insurance claims, they compensate for that added risk by charging more expensive rates.
Your car insurance costs with bad credit depends on which company you choose, where in Vermont you live, and an array of other rating factors. See below typical insurance prices for drivers with bad credit in major Vermont cities and rates from top insurance companies, plus a few tips on how to save on car insurance if you have bad credit in Vermont.
Drivers in Vermont face an average penalty of $934 each year for having a "worst"-tier credit score. A driver 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 Vermont|
|Below Fair to Poor||$1,649|
|Average — All Credit Tiers||$1,027|
Your auto insurance prices will also vary based on the geographic area in which you live. Car insurance companies rely on your address to estimate your likelihood of filing a claim: the more claim-prone your area,, the more you'll pay.
Listed below are major Vermont cities and their average car insurance costs for drivers with low credit scores.
|City||Average Annual Rate — Worst Credit||Average Annual Rate — Poor Credit||Average Annual Rate — Below Fair to Poor Credit|
Another factor contributing to your premium is the insurer you choose. Each and every auto insurance company prices its policies in a different manner, giving rating factors varying weights in their pricing calculations. Credit can be a significant pricing differentiator between insurance companies. In Vermont, the most affordable insurance company for a driver with bad credit is Nationwide, which offers average savings of $96 annually versus the next-cheapest company, Concord Group Insurance.
See prices from leading auto insurance companies in Vermont for drivers with bad credit.
|Company||Average Annual Rate — Worst Credit Tier|
|Concord Group Insurance||$1,299|
If you're dealing with the difficulty of buying auto insurance with a bad credit history, remember these tips: