According to new research, insurance prices vary drastically between drivers with a good driving record and those with a tarnished one. The cost difference can be as much as $3,000 a year depending on which auto insurance company you’re using. A Chicago-based insurance resource company did the research to find out how much a bad driving record will really cost you.

The company says they created three driver profiles using made up people. All of them were 21-years-old, driving 2009 Mustangs and living in Palatine, Illinois. Each of the fictitious drivers had the same five to six year history. The only difference between them was their driving record. “Everything else about the drivers’ profiles was as identical as possible using the various online applications of six major auto insurance companies,” David Thompson, President and CEO of E-Insure Services, said in a news release. “Good Driver had no moving violations and no accidents, Bad Driver reported a couple of accidents, and Drunk Driver had a DUI conviction.”

The best driver of the bunch was able to get insurance rates as low as about $90 a month. The bad driver received quotes ranging from $166.22 to $238.05. And finally, a drunk driver was given a wide range of quotes. “One carrier wouldn’t insure Drunk Driver at all. Another wanted $347.86 per month. And a third gave Drunk Driver the low quote of $95 a month, almost as low as Good Driver’s lowest car insurance quote ,” said Thompson in the news release.

Even the company conducting the research says the broad range in quotes is surprising. “Car insurance companies look at a number of factors besides driving records to determine premiums. The miles you drive, your vehicle and its safety rating, even your credit score come into play. That’s why it really pays to get at least three competitive auto insurance quotes before you commit,” said Thompson in the news release. Thompson says most drivers can expect to pay about six percent more this year for author insurance compared to last year.

In order to save money, experts say it’s important to take advantage of anti-theft discounts, multi-car policies, and enlisting the same company for multiple insurance products. Thompson offered up other options for cutting costs, “Pay annually instead of monthly. Pay online at the insurer’s website. You should also review your auto insurance at least once a year and review your coverage options.”

The Michigan Supreme Court supported the practice of using credit scores to set auto and home insurance rates of policyholders. Some say that using credit history discriminates against poor and middle-class people. But those in the insurance industry says it makes sense because credit scores are often indicative of whether a person will file claims. Michigan’s high court voted 4-3 in a case that questioned whether the state’s insurance examiner exceeded her authority in 2005 by trying to ban the credit-based scoring, according to the Detroit Free Press. “We’re very pleased with the ruling,” Peter Kuhnmuench of the Insurance Institute of Michigan told the Detroit Free Press. “The evidence was overwhelming.”

Those against the policy are now trying to get the legislature to ban it. The state House did approve the ban, but early predictions show a different outcome is likely in the Senate. Kuhnmuench told reporters that approving the ban would actually cause rates to increase for two-third of insurance policyholders. On the contrary, a state insurance consumer advocate claims the ban would cut rates for nearly three out of four insurance customers.

Chief Justice Maura Corrigan voted in favor, saying that insurance companies “have demonstrated a clear correlation between insurance scores and risk of loss,” justifying the use of credit scores. Chief Justice Marilyn Kelly who was against eliminating the ban said that the evidence supporting the connection between credit scores and insurance risk was not conclusive or complete.

Did you know that your credit score can impact what your insurance company charges you? Many companies review your credit report to determine the rate you’ll pay. If your less-than-perfect credit is causing you to pay more for car insurance, here are some steps to take.

Review Your Credit Report: Make sure your credit report is accurate. Every consumers in the US is allowed free access to their credit report every twelve months from each of the three main credit reporting agencies. Visit AnnualCreditReport.com for access to yours. Look for any inaccuracies that could be forcing your credit score to be lower than it should be. Make sure there are no signs of identity theft.

Pay Delinquent Accounts: Eliminating any outstanding debts that are in collection will help improve your credit score. Make sure to pay your bills by the due date to avoid an even lower credit score.

Ask for Proof: If your insurance company charges you  higher rates based on your poor credit score they are required to tell you based on the Fair Credit Reporting Act. If they tell you that be sure to ask for proof. They must give you a copy of the credit report they used to obtain the information about your credit score.

Check Around: Quotes vary with different insurance companies. If you’re not pleased with the quote you receive from one company, check around. You may get a better rate for car insurance from someone else.

Making the most of homeowners insurance takes work. Choosing the right homeowners insurance policy is only one of the steps you have to take.