The nation's capital is full of policymakers—undoubtedly many of them involved with insurance. Still bad credit here can make the wrong impression on your car insurance carrier.
Using credit reports to inform insurance ratings is a touchy subject. Not all information on your credit report is up for grabs, however. What don't car insurance companies use when calculating a credit-based insurance score? The answer: ethnic group, age, gender, disability, religion, address, marital status, and nationality.
Insurify's comparison tool will help you make sure you're getting the best possible quote even with a bad credit rating. You can have peace of mind you're not paying any more than need to, and customers save $48 per month on average.
Not a lot of cheap car insurance options exist in this 68-square-mile city. The better your credit becomes, the more generous a selection you will have. Although you may find other policies from different carriers, people with bad credit can find their best rates from Travelers, Liberty Mutual, and American Family Insurance.
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American Family Insurance
Drivers with bad credit pay about 12.5 percent more than average in Washington, D.C. This rate is relatively cheap compared to other states. Remember: things like gender, marital status, and location still impact rates on top of credit factors.
The District allows the use of credit-based insurance scores to determine risk and set insurance rates. How much money you have doesn't matter. Instead, insurance companies look to the score to understand how the motorist manages their money. For example, payment history makes up 40 percent of a motorist's FICO (a credit score reporting company) score.
In Washington, D.C., car insurance companies that give out policies without credit checks are few and far between. Their business depends on the risk-related information they can easily interpret from a customer's credit report.
One alternative is to find an insurer with usage-based insurance policies. The dollar amount of these policies doesn't depend on your data as an individual. Instead, rates are dependent on the type of vehicle, how long, how far, and how well you drive.
The difference in premiums between excellent and poor credit amounts to $35 a month in Washington, D.C. This comes to $420 a year and is a lot of money to let go of without making financial changes. Even a small step, like paying every bill on time, can help boost you to the next tier.
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Insurance prices and policies can vary significantly between companies, and a state like Washington, D.C draws a wide variety of choices when factoring insurance rates for drivers with bad credit.
Insurify's rate comparison tool will help you make sure you're getting the best possible quote based on your needs and location. You can have peace of mind you're not paying any more than you need to, and customers save $585 per year on average.
Use Insurify for all of your car insurance comparison needs! Compare and connect directly with the top insurance companies to find the best rates as well as the most personalized discounts and coverage options.
Insurify’s network includes over 200 insurance companies throughout the U.S. who can work with you to get you the right auto insurance policy at the cheapest price.