Inflation began skyrocketing in 2022, and while it has gotten somewhat better, we are still paying more for some items in the grocery store and at the gas pump.

There is no doubt that for most of us in Louisiana, making our check stretch until the end of the month is becoming somewhat difficult if not nearly impossible for others.

Getting behind on your bills is a matter of life for many of us, and it does nothing great for your credit ranking. When you try to borrow money for a car, that credit rating can prevent you from getting the loan or paying way more than others would for the same loan.

Now we are finding out from the Consumer Federation of America's latest study that when your credit ranking is poor you are buying a much higher price for auto insurance than other people—nothing like kicking people while they're down.

That's right. In a state that already has higher auto insurance rates than 98% of the rest of the country, if your credit stinks, but your driving record is excellent, that doesn't matter.

Doug Heller
Photo courtesy of

CFA's Director of Insurance and one of the co-authors of the study, Doug Heller, said this in a press release,

On average, a consumer with poor credit has to pay twice as much for auto insurance as a driver with excellent credit, even if everything else, including their driving safety history, are the same. ....not only is this unfair to safe drivers, ....the use of credit history for insurance pricing leads to disproportionately higher premiums for lower-income drivers and people of color.


Louisiana Insurance Commissioner Jim Donelon
Photo courtesy of Louisiana Department of Insurance website

Louisiana Insurance Commissioner Jim Donelon told Louisiana Radio Network he believes credit is an accurate predictor of the likelihood of loss for a policyholder because studies have shown that people with poor credit, do indeed, cost insurance companies that provide them with coverage more than people with good credit.

Director of Real Reform Louisiana Ben Riggs commented to Louisiana Radio Network that we are seeing drivers that are safe drivers with poor credit that are paying 111% more than people with excellent credit.

Riggs is quoted as saying,

If you have a good driving record and poor credit you will pay more for auto insurance than a driver with a DWI and excellent credit. It's rewarding dangerous drivers and penalizing good drivers.

By clicking here, you can see the entire report.

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Gallery Credit: Amanda Silvestri

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