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Poor Credit Leads to Higher Insurance Rates Than Having a DUI

Name: Median Annual Car Insurance Premium by Credit Tier
Creator: The Zebra
License: https://creativecommons.org/licenses/by-nc-sa/4.0/

And Other Ways Driving Affordability Hits Low Credit Drivers the Hardest

By Susan Meyer

Updated September 30, 2026

Reviewed By Beth Swanson

Researched By Bree Matheson

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Cost of insurance by credit score
Why credit score matters
Less confidence in coverage
How concerned are drivers with low credit?
How to save money on insurance
Methodology

The Rising Cost of Driving

The Zebra recently published a report on auto insurance and the affordability of owning a car in the U.S. Skyrocketing gas prices, the increasing cost of buying a car or buying auto parts to repair one, and auto insurance costs are putting pressure on American drivers. After all, the median annual insurance premium is now over $2,000.

However, that pressure isn’t felt equally. We surveyed 1,500 Americans, and the affordability of owning a vehicle is hitting some harder than others. Unsurprisingly, the group feeling the effects of rising auto costs the most are those with low credit scores.

Having a bad credit score in the United States generally means everything will be harder and more expensive, from getting an apartment to applying for a car or home loan. But what not everyone realizes is that even auto insurance will be more expensive — significantly so.

How Much Poor Credit Can Cost You

Consumers with poor credit scores (below 580) pay a median of $1,805 more each year than consumers with excellent credit scores. This is comparable to the median annual premium for consumers with a DUI.

How much credit score matters in the price you are offered will vary based on where you live. Some states don't allow personal rating factors like credit score to be considered, but the vast majority do.

Here are the median annual insurance rates people at each credit score can be expected to pay.

Why Do Insurance Companies Use Credit Scores?

We understand exactly why someone with a DUI would be penalized by higher insurance rates. Make an extremely reckless choice behind the wheel, and the insurance company can make an assumption that you're more likely to cause an accident in the future. But why would credit score be a factor in paying higher rates?

Insurance companies base their prices on risk, and they've found that statistically, drivers with higher credit scores file fewer claims, and those claims tend to be less expensive. Conversely, individuals with lower credit scores are statistically more likely to file claims.

That said, some states ban or limit the use of credit scores as a rating factor in insurance pricing: California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, and Utah.

For those in other states, credit scores have a significant impact on your rates.

Compromised Coverage and Shaky Confidence

Faced with steep premiums, drivers with low credit scores are often forced into difficult trade-offs just to keep their vehicles insured.

Individuals in lower credit tiers are significantly more likely to drop comprehensive or collision coverage and opt for liability-only policies. While liability-only coverage keeps a driver legal on the road, it leaves them completely unprotected if their own vehicle is damaged, stolen, or totaled putting much more financial risk on the driver.

Drivers with low credit are fully aware that liability only isn’t the best choice, but potentially it's the best they can afford. When asked if they were confident their current auto coverage was adequet for their needs, 92% of people with Excellent credit Agreed or Strongly Agreed with that statement, compared to only 80% of people of with Poor credit.

Affordability in general was a concern. When asked if they were confident they could afford their deductible, just 51% of people with Poor credit were confident they could, compared to 87% of people with Excellent credit.

Because paying a high deductible poses a genuine financial crisis, drivers with lower credit scores reported being much less capable of taking on financial risk. They cannot strategically raise their deductibles to lower their monthly premiums, effectively locking them into higher fixed monthly costs.

Essentially, having a Poor credit score often leads drivers to pay more for insurance, but with far less peace of mind and financial protection.

Caring About Insurance When Everything Else Is on Fire

It is no surprise that this financial pressure colors how drivers view the broader economy. In fact, 58% of people with Poor credit describe current US economic conditions as poor or very poor, compared with 38% of people with Excellent credit.

Interestingly, despite the fact that people with Poor Credit tend to pay far more and may have a less positive financial situation overall, they aren't as concerned about insurance costs. In fact, only 45% of people with Poor Credit said they were Concerned or Extremely Concerned about rising insurance costs, which is actually less than people with Fair (55%) or Very Good (50%) credit.

At first glance, it seems counterintuitive that those paying the highest relative premiums express lower concern. However, the survey data highlights a sobering reality. It isn't that auto insurance is affordable for low-credit drivers—it's that basic daily survival is taking center stage.

We surveyed consumers about 12 different affordability metrics and which they were “Concerned” or “Extremely Concerned” about. The categories where people with Poor Credit were substantially more concerned than those with higher credit scores were personal debt levels, costs of basic necessities, medical expenses, and the cost of gas.

Saving Money in an Increasingly Unaffordable World

With car parts, gas, and insurance costs as a whole not showing any signs of slowing down, the affordability of driving is just one more rising expense causing stress for Americans.

And for those with Poor credit, it can feel like a frustrating loop they can't escape. After all, getting one's personal debt load down and improving one's credit is that much harder when everyday expenses like auto insurance are higher. And the normal advice for lowering an out-of-control monthly payment, like "get a higher deductible," may also not be in reach.

If you have a bad credit score and are trying to keep insurance costs manageable, here are some tips that can help.

Shop Around

Shop for insurance every 6 months and compare multiple rates. Some companies offer better rates for drivers with lower credit scores than others.
Look for Discounts

Research different discounts that may apply to you. Though often small individually, if you apply multiple discounts, they may help bring down your monthly payments.
Shift Weight to Behavior

Don't pay DUI prices just for having bad credit if you're a great or infrequent driver. Consider telematics or pay-by-mile programs that can focus your payments on how or how much you drive instead of your credit.

Methodology

Survey:

The Zebra partnered with Savanta, an independent agency, to conduct an original survey based on online responses from 1,500 US auto owners, conducted in April 2026. The data from 1,500 consumers has been weighted to the most recent Census to ensure it is representative of US consumers who own vehicles.

We break down credit scores by the following tiers: excellent (800+), very good (740-799), good (670-739), fair (580-669), poor (below 580).

Database:

The auto insurance rates shown in this report are generated by The Zebra’s Dynamic Insurance Rating Tool, a proprietary estimator that uses the most up-to-date approved rate filings across the United States at the ZIP code level to ensure the data reflects current pricing. The underlying rate information is sourced from Quadrant Information Services, which compiles filings from insurers in every state using data from S&P Global.

This report has moved to using median numbers rather than averages in order to prevent extreme outliers from skewing the data.

We use the following base profile to calculate rates:

A 30-year-old single male with good credit and no accident or violation history.
A 2015 Honda Accord with 50/100/50 liability limits plus $500 deductibles for comprehensive and collision coverage.

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