Why Credit Scores Can Affect Your Auto Insurance Rates!

Many insurance companies can and will use credit scores to help determine their coverage rates to potential customers! The biggest reason they do this is not to see if you will be late on payments or how long you’ve had credit at certain places, but they use it to help predict if you will be more likely to file a higher than normal amount of insurance claims! 

Although your credit score is used help to determine your auto insurance rates, it is just a part of a larger picture! A few states, California, Hawaii, Massachusetts, and Michigan actually prohibit insurance companies from refusing to insure based on credit score—but in other states some insurance companies still might do so! This is why it is always helpful to have a good credit score, since it helps in many facets of a person’s life! 

Other factors that are looked at are, obviously, your driving record, the area that you live and commute, your age, and the type of car you drive as well! Now, if you are priced out of a certain type of coverage you can find a cheaper coverage that doesn’t cover as much—but it is always good to get the best insurance that you can! Be sure to keep up with everything, including your credit score, so you can possibly receive lower rates on your insurance coverage! 

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