If you’ve ever been turned down for a credit card or charged more for a loan, you know how much your credit score can affect your finances. But here’s something many RVers don’t realize: bad credit insurance is a real issue—and it could be the reason you’re paying significantly more for your RV coverage.
Even if you have a spotless driving record, a low credit score can dramatically raise your RV insurance premium. In fact, in many states, your credit score matters more than your driving history. That’s why understanding how credit impacts insurance—and what you can do about it—can help you save money and stay protected on the road.
Why Does Credit Score Matter in RV Insurance?
Insurers often use a variation of your credit score, called a credit-based insurance score, to predict risk. Statistically, drivers with lower scores are more likely to file claims—which means insurers often charge higher premiums to offset the potential cost.
For RVers, this means your financial history can follow you onto the road. And if your credit is on the lower end, you could be paying double or even triple what someone with excellent credit pays—no matter how carefully you drive.
The Difference Credit Makes
Nationwide data shows that improving your credit score from “Very Poor” to “Exceptional” can lower your insurance rate by more than 270%. That’s thousands of dollars in savings each year.
Example:
- Very Poor Credit (<523): $6,200/year
- Exceptional Credit (>823): $1,650/year
Even if both RV owners have identical coverage, the difference in credit alone could add up to over $4,500 a year.
State Laws Vary on Credit Use
Not every state allows insurers to use your credit score when pricing insurance. Here’s how it breaks down:
- Banned: California, Hawaii, Massachusetts, Michigan
- Restricted: Maryland, Oregon, Utah, and a few others
In most states, though, insurers are still allowed to use credit as a rating factor. That’s why it’s important to understand your rights—and shop with an agency that can help you navigate these rules.
Improve Your Credit, Reduce Your Premium
Even modest credit improvements can lead to big insurance savings. Moving up just one tier—from “Poor” to “Fair,” for example—can lower your rate by as much as 50%.
Other tips:
- Pay bills on time
- Keep credit card balances low
- Avoid opening too many new accounts
- Monitor your credit report for errors
Legislative Changes on the Horizon
More states are rethinking whether credit should play a role in insurance pricing. Some, like Michigan, have already passed legislation to ban it—and the impact has been clear. Drivers with lower credit saw massive savings, while those with high credit saw only minor increases.
Federal efforts like the proposed PAID Act aim to eliminate credit-based insurance pricing nationwide. While these efforts haven’t yet passed, public and legislative interest continues to grow.
How to Save on RV Insurance — No Matter Your Score
If your credit needs work, don’t worry—there are still plenty of ways to lower your RV insurance premium:
- Compare rates: Not all insurers treat credit the same. We shop multiple providers to find the best match for your situation.
- Ask about discounts: You may qualify for savings through RV safety courses, bundling, low mileage, or membership programs.
- Make gradual improvements: As your credit improves, your premium can too. Be sure to request policy reviews regularly.
Final Thoughts on Bad Credit Insurance for RVers
If you’re paying too much for your RV policy, bad credit insurance practices may be to blame. While many insurers still use credit scores to set rates, that doesn’t mean you’re stuck with high premiums forever.
At Happy Camper Insurance, we specialize in helping RV owners find the right coverage—no matter where their credit stands. Whether you’re rebuilding your credit or simply want a fairer rate, our team is here to help.Call Happy Camper Insurance today for a personalized quote and expert help navigating the world of bad credit insurance—because your next adventure shouldn’t be limited by your credit score.
