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Zip Codes and Credit Scores: Why Your Address and FICO Score May Be Driving Up Your Car Insurance
New data reveals that your ZIP code can increase car insurance costs by 20–40%, while a poor credit score may lead to a shocking 60% increase; learn how to fight back and save money by understanding these hidden factors and shopping smart.
LOS ANGELES, June 11, 2025 /PRNewswire/ -- A new analysis from reveals that where you live and how you manage your credit may significantly affect what you pay for car insurance even more than your driving history. The findings are part of a broader education initiative tied to the company's latest report, How Often Should You Get a Car Insurance Quote?, which encourages drivers to regularly reassess their policies as insurers weigh unexpected factors in premium pricing.
Key insights from the report and supporting data include:
Your ZIP Code Can Add Hundreds to Your Annual Premium : According to analysis in Does Your Zip Code Impact Your Car Insurance Rates? , urban residents in high-density or high-claim areas can pay 20–40% more than drivers in neighboring ZIP codes—even when all other factors are equal. Theft rates, accident frequency, and even weather events can all play a role.
Credit Score is Quietly One of the Biggest Factors in Pricing : Many drivers don't realize that their credit score can be as impactful as their driving record when it comes to setting rates. In The Role of Credit Score in Determining Insurance Rates , found that drivers with poor credit may pay up to 60% more than those with excellent credit even if they have a clean driving record.
2 in 3 Drivers Don't Know These Rules Exist : Consumer sentiment is one of confusion and frustration. According to internal surveys, fewer than 1 in 3 drivers are aware that non-driving factors like ZIP code and credit can impact their rates. The result? Many overpay without realizing they're being penalized for something unrelated to their behavior behind the wheel.
Americans can get the best deal by checking their quote every 6-12 months : The article emphasizes the power of regular comparison shopping. With rates shifting due to economic and underwriting trends, checking quotes every 6–12 months is one of the most effective ways to save especially for those who've recently improved their credit or moved to a lower-risk area.
"Drivers are often told that safe driving saves money. But too often, your ZIP code or FICO score does more to shape your premium than your time behind the wheel," said Fausto Bucheli, Founder & President at "We're committed to helping drivers take back control by understanding how the system works—and how to beat it."
The Bottom Line: Knowledge is Savings offers a growing suite of tools and resources to help consumers better understand what's behind their rates and how to reduce them. From location-based quote comparisons to guidance on improving insurability, the platform helps drivers optimize their coverage without compromising protection.
Explore the Full Report Visit to read How Often Should You Get a Car Insurance Quote? and access comparison tools, savings tips, and expert advice.
About Founded in 1974, is a trusted insurance solutions broker dedicated to helping individuals and families across the United States find affordable, high-quality insurance coverage. With nearly five decades of experience, the company partners with top-rated national insurers to offer a wide array of products, including auto, SR-22, motorcycle, home, renters, life, health, RV, and boat insurance. simplifies the insurance shopping process through its user-friendly online platform, providing instant quotes tailored to each customer's unique needs. By combining unbeatable affordability with reliable coverage options, the company ensures that customers can secure the protection they need without compromising on quality. Headquartered in Chino Hills, California, is committed to delivering exceptional service and value to its clients nationwide. For more information, visit or contact info@
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