Homeowners with bad credit pay 91% more in homeowners’ insurance premiums than those with excellent credit; and consumers with median credit pay 29% more than those with excellent credit, according to a new study by InsuranceQuotes.com.
People with poor credit pay at least twice as much as people with excellent credit in 37 states and Washington, D.C. The highest increase is in West Virginia at 208%, followed by Virginia (186%), Ohio (185%) and Washington, D.C. (182%).
The greatest differences between excellent and median credit were observed in Montana (65%), Washington, D.C. (60%) and Arizona (55%).
California, Massachusetts and Maryland prohibit insurance companies from using credit to calculate homeowner’s insurance premiums. And the InsuranceQuotes.com study found that credit scores do not typically affect premiums in Florida.
“This is another example of why credit is such an important part of your financial life,” says Laura Adams, senior analyst, InsuranceQuotes.com. “Maintaining a good credit history suggests that you’re a less risky customer and can lead to several hundred dollars in annual homeowner’s insurance savings.”
Click here to see the complete study.