Yes, it is true that having a low credit score affects your rates, but not all companies penalize with the same severity. Geico’s rates are 23% lower than the national average. To be fair, we should acknowledge that if you live in California, Hawaii, or Massachusetts, then your credit score isn’t used to determine rates— so be careful if this is your choice for insurance and you live in one of those states.
DID YOU KNOW:
You can get cancelled by your insurance company at any time? During the 60-day binding period when your insurance company scrutinizes your record for discrepancies, making a mistake on your application could risk the entire application getting tossed in the trash! Luckily, there are some resources if you’ve been treated unfairly including legal recourse through the state department of insurance.
Approximately 16% of Americans Have Bad Credit
Approximately 16% of Americans have very poor credit, or a FICO score of between 300 and 579, according to Experian’s 2019 Consumer Credit Review. Only an elite 1.2% have a perfect 850 credit score.
Average FICO Score Percentage by Range
| FICO Score Range | 2010 | 2018 | 2019 | |
|---|---|---|---|---|
| Very poor | 300-579 | 21% | 16% | 16% |
| Fair | 580-669 | 18% | 18% | 18% |
| Good | 670-739 | 19% | 21% | 21% |
| Very good | 740-799 | 24% | 25% | 25% |
| Exceptional | 800-850 | 18% | 20% | 20% |