New survey shows credit scores influence insurance costs

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Do you have bad credit?  If so, you could end up paying much more for car insurance. 

In the Philadelphia region, the cost of automobile insurance depends heavily on your credit score, according to a new study by the website wallethub.com.

Jill Gonzalez of WalletHub runs through the numbers.

“In Pennsylvania, the fluctuation between someone with an excellent credit score and no credit history at all, it’s a 69 percent difference; in New Jersey, it’s a 68 percent difference; and in Delaware, there’s a 50 percent difference,” she said.

It’s clear some insurers give more weight to your credit score, Gonzalez said.

“We saw that Farmers Insurance appears to really rely on credit data the most,” she said. “GEICO, on the other hand, the least.”

California, Hawaii and Massachusetts ban the use of credit scores to calculate car insurance premiums.

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