You need to know that the insurance premium for your car is not a constant number. It depends upon a lot of factors. Basically, if the company considers you as a rational and disciplined person who would take his responsibilities, then your insurance premium would be low. The credit score is the best way for the insurers to determine whether you are a risk free customer or not.
The premium is 65% higher for the person with low or no credit score than for a person who has a good score. The percentage changes from one state to another, but, in short, people with high score, pay less. This is because, the person with a higher score is considered to be responsible and would not do any action which would affect the value of his asset, the car.
This does not mean that the customer with higher credit score will have low premium, no matter how the other factors are. The driving experience, the number of accidents committed and other factors also play an important role when it comes to determining the premium.
State by state
There is an overall fluctuation of 116% between the drivers with good score and bad or no score. Vermont has the lowest difference of 18% more premium than people with a high score. 18% might look like a small number, but the actual amount which contributes to that percentage in 10-20 years would be very huge. The greatest impact is seen in District of Columbia. It has 126% fluctuation.
The insurers are transparent enough to let the customers know the type of information which they are looking for in the credit score. This makes the data accessing easy according to major insurance companies.
What to do if your score is less?
If your credit score is less due to certain valid reason, like student loan, cancelling a credit card or other reasons where your inability to manage your account is not the reason, you can inform the insurer with a written request and concerned proof. This would help to reduce your premium to some extent. However, this totally depends upon the insurer and how he determines your reason for a low credit score.
Download your credit report and start making steps towards increasing the score before you are affected by it. It might take a considerable amount of time to heal your score, but, it is very essential to do so, immediately.