Study: Poor Credit Spikes Home Insurance Premiums as Much as 200%

—50-State Data Analysis Reveals Where Costs Increase Most, Least—

AUSTIN, Texas–(BUSINESS WIRE)–“What’s your credit score?” is a question that’s become more important
in everyone’s financial lives. What many don’t know is how much credit
can negatively affect what you pay for homeowners insurance. For the
third year,
examined the average impact of credit on home insurance rates in all 50
—and the results are more extreme than ever.

The study found that policyholders with fair credit pay and average of
36% more than those with excellent credit. That’s up from a 32% increase
in 2015 and 29% in 2014. What’s more, if you have poor credit rather
than excellent credit, your premium more than doubles, increasing an
average of 114%.

“Many consumers aren’t even aware that, in most states, credit plays a
significant role in determining how much you pay for home insurance,”
said Laura Adams, senior insurance analyst, insuranceQuotes. “So, even
if you don’t plan on using credit to borrow money, it still affects your

When credit drops from excellent to poor, these states see the
greatest home insurance premium increases:


These states show the smallest increase (excluding CA, MA and
MD, where using credit in setting home insurance rates is

1. South Dakota — 288.1%

1. North Carolina — 0.2%

2. Arizona — 268.6%

2. Florida — 25.7%

3. Oklahoma — 248.0%

3. New York — 29.3%

4. Nevada — 235.3%

4. Wyoming — 43.9%

5. Oregon — 234.9%

5. Hawaii — 53.1%


“My advice to consumers is do everything you can to build and maintain
excellent credit so you pay less for credit accounts and home and auto
insurance,” said Adams. “To maintain good credit make payments on time,
keep balances low, and avoid opening many new accounts.”

The full report—which includes state-by-state rankings as well
additional important tips and insights for consumers—is available at

Methodology: commissioned Quadrant Information Services to
calculate home insurance rates using data from 6 major carriers with
approximately 60% market share in each state. The averages are based on
a 45-year-old who owns an 1,800 square foot, 2-story, single family
home, built in 1976, with $140,000 dwelling coverage, $300,000 liability
coverage and a $500 deductible. The three tiers of credit-based
insurance scores analyzed were excellent, fair and poor.

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Jacob Streiter, 646-695-7047