These 5 Auto Insurance Companies Have the Best Rates for Drivers With Excellent Credit

Excellent credit can save you money in several ways. You'll qualify for the lowest loan rates, and better credit cards, for starters. It can also save you money on auto insurance. Drivers with excellent credit pay less than half of what drivers with poor credit pay for insurance, according to auto insurance research by The Motley Fool Motley Fool Money.

The amount you save depends on the insurance company. Some car insurance companies reward drivers with excellent credit quite a bit. If you have a high credit score, here are the insurance companies with the best rates.

1. State Farm

• Average annual premium with excellent credit: $1,126
• Average annual premium with poor credit: $4,123
• Average annual premium overall: $2,595

State Farm has the lowest average rates for drivers with excellent credit. It's also a highly rated insurance company with impressive customer satisfaction scores and lots of discount opportunities. Credit history is a big part of how State Farm sets car insurance rates, so drivers with poor credit are better off looking elsewhere.

2. USAA

• Average annual premium with excellent credit: $1,138
• Average annual premium with poor credit: $2,254
• Average annual premium overall: $1,696

USAA has some of the cheapest car insurance rates across the board. It's second for drivers with excellent credit, first for drivers with poor credit, and first overall. Based on its low prices, USAA is a great option for auto insurance, if you're eligible. To become a USAA member, you need to be a member of the military, a veteran, or a family member of a USAA member.

3. Auto-Owners

• Average annual premium with excellent credit: $1,369
• Average annual premium with poor credit: $5,224
• Average annual premium overall: $3,297

Auto-Owners is available in 26 states, and you need to speak to one of its agents to get a quote. Your credit score is more important with Auto-Owners than with any other major car insurance company. Drivers with poor credit pay nearly $4,000 more for insurance with Auto-Owners than drivers with excellent credit.

4. Geico

• Average annual premium with excellent credit: $1,658
• Average annual premium with poor credit: $2,707
• Average annual premium overall: $2,182

Like USAA, Geico offers competitive rates for drivers at every credit rating. It's second both overall and for drivers with poor credit. You'll find plenty of coverage options and discount opportunities with Geico. However, this carrier may not be the best choice if you've had an accident. It rewards drivers with a clean driving history more than many other carriers.

5. Progressive

• Average annual premium with excellent credit: $1,793
• Average annual premium with poor credit: $3,162
• Average annual premium overall: $2,453

Progressive is another carrier with low rates for drivers with excellent credit and poor credit. It's known for unique coverage options, including custom parts and equipment coverage, and it offers rideshare insurance. It's also a good choice for drivers who have had an accident.

Your credit could get you cheaper car insurance

As you can see, there's a huge difference between what car insurance costs with excellent credit and with poor credit. If you haven't already, make sure to check your credit score to see how high it is and what you can do to improve it. Here are the best ways to build credit:

• Always pay your bills on time.
• Don't use too much of your credit. Try not to carry a balance higher than 30% of your credit limit.
• Pay off your credit cards in full every month, if possible. It's good for your credit, and you'll avoid interest charges.

No matter your credit score, it's also a good idea to compare car insurance quotes from multiple carriers. You can't be sure which company will offer you the lowest rates unless you go rate shopping. Do this at least once a year, and if you've recently improved your credit score, it's the perfect time to shop around for car insurance.