The Zebra, an online platform for comparing insurance policies, has found that drivers with low credit scores may end up paying more than double the amount paid by those with high credit scores for car insurance. 

According to a report published by The Zebra on January 31, drivers boasting "excellent" credit scores pay an average of $640 for a six-month premium. Conversely, drivers with "poor" credit shell out an average of $1,344 for the same period, while those with the "worst" credit ratings pay approximately $1,550. The report elucidates that insurance providers calculate rates based on a driver's potential risk. Historical data indicates that drivers with poor credit scores tend to file more claims than their counterparts with excellent credit.

A separate report from the Urban Institute reveals that over 25% of Americans either have poor credit or lack a credit history altogether. While race and income do not directly influence a person's credit score, individuals residing in low-income communities often exhibit lower or non-existent credit scores. Bob Annibale, Global Director of Citi Community Development and Inclusive Finance, stated: "Wealth and race and immigrant status matter—not in the algorithm, but in access to this information. The wealthier you are, the more likely you are to have access to a financial planner or an accountant."

Established in 2012, The Zebra aims to simplify the process of selecting insurance policies for consumers as per its official website. The company's algorithm uses customer data to compare over 100 insurance providers and recommend policies best suited to individual needs. Keith Melnick currently holds the position of CEO at The Zebra.