Car insurance companies use a range of factors to calculate a driver?s rates, including their age, driving history, and credit score. Young drivers, people with blemishes on their driving records, and others often pay way more for insurance than people with different risk profiles. MarketWatch recently studied insurance rates for people who fall into those high-risk categories and found that while some pay exorbitant amounts to cover their vehicles, certain insurers are more lenient than others.
offers the cheapest rates for young people, with an average annual rate of $2,366, but the company only works with active or former military members and their families. Travelers had the best rates for non-military drivers, at $2,441, while Nationwide was considerably higher, at $3,076. That said, those companies undercut the $3,634 national average for young drivers, while State Farm came in slightly higher at $3,694.
: $1,884 Geico: $2,605 Bad credit also weighs heavily on insurance rates. Drivers with spotty credit histories pay an average of $4,285 nationally, but the good news is that there are several companies that charge far less: Geico: $1,930 : $1,987 Travelers: $2,012 Nationwide: $2,021 Progressive: $2,446 Calculating insurance costs is a game of risk assessment, with insurers charging more for people they believe may be irresponsible behind the wheel. It might seem unfair that car insurance companies can penalize drivers for bad credit or other factors, but there are ways to save money on coverage if you fall into one of the high-risk groups. Shopping around is one of the best ways to cut your insurance costs.