(July 13, 2017) Everyone knows you need auto insurance to drive. It’s the law, everywhere but New Hampshire. We also know that our credit scores dictate what types of credit cards and loans we can get. But most of us are in the dark about to the connection between credit scores and car insurance.

So WalletHub set out to see just how much credit data affects the cost of insurance policies in each of the 50 states and the District of Columbia.

We did so by comparing the cost of policies from five of the country’s largest auto insurance companies for a pair of hypothetical applicants who are identical save for their credit standing: One has excellent credit, and the other has no credit. We also examined how transparent the major car insurance companies are regarding their use of credit data and where they get it.

Key Findings

• People with no credit pay 65% more for car insurance than people with excellent credit, on average. Drivers with no credit pay at least twice as much in Pennsylvania, New Jersey and Michigan.

• Farmers Insurance seems most reliant on credit data, with credit newcomers paying over twice as much as excellent-credit customers. Even GEICO (least reliant) has a 40% penalty.

• The five major auto insurance companies use credit data in 90% of the states in which they operate, on average. Only Progressive uses credit data in all of the states it serves.

• Travelers is the most transparent about its use of credit data, providing a clear disclosure when generating quotes.

Finally, just to recap, here’s a quick overview of how much excellent credit can save you on car insurance: