Insurance companies are more likely to give you better insurance rates if you have a higher insurance score.  To insurance companies a higher insurance score for an insured has a direct correlation to a less likelihood that they will file a claim.

How do you find the best car insurance with poor credit? 

Make sure you find an insurance carrier that does not base their rates by credit.  Surprisingly enough there are a good amount of carriers that do that.  

Why does the cost of bad credit auto insurance vary by state? 

It definitely does.  It has to do with the amount and cost of claims in that state.   If you take a state like Florida which has a high amount of claims, so by having poor credit, it’s going to increase your rates by a significant amount.  But if you look at a state like Iowa which has a small amount of claims, if you have poor credit the cost difference won’t be as severe.

What are some tips for improving your credit in order to get better auto insurance rates?

I would get a prepaid credit card.  Then load a small dollar figure that works in your budget.

Dispute negative things on your credit score

If a relative or friend has a credit card account with a high credit limit and a good history of on-time payments, ask to be added as an authorized user.

Pay off any collections account