Auto Insurance and Your Credit Score

More often than not, your auto insurance carrier takes your credit score into account when determining your premium. As we have mentioned before, auto insurers are in the game of risk. The more they are at risk, the more you pay to be protected by them. People with low credit scores have proven that they are a risk, specifically a financial risk, and thus will pay more.

So how important can your credit score be in determining your rate? VERY IMPORTANT! In fact, you could end up paying 50% more for the same auto insurance if you have a poor credit score. So, the moral of the story is to monitor your credit score often, and keep it in good shape. Pay your bills on time, have some credit cards but don't open new accounts unnecessarily, keep a balance on your cards but never more than 50% of the total credit available, and again ALWAYS PAY ON TIME.

As mentioned time and time again, shopping around for auto insurance quotes will help you reduce your premiums. Despite your current credit situation, you should be able to save money immediately by getting auto insurance quotes from the major carriers. TAKE ACTION!