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Auto Insurance Rates and Your Credit Score

No one likes the idea of paying too much money for car insurance. There are ways to get low car insurance rates, but in some states, there is a practice that is in place which may make this somewhat difficult.

Except for California, Hawaii, and Massachusetts, most all states allow insurance companies to make use of a person’s credit score when providing them with a rate. If you live in a state where this practice is not allowed, you do not have to worry about your score affecting the auto insurance rates you get so try visiting carinsurancerates.com.

However, if you do live where this practice is allowed, it does not mean that you are forced to pay high rates if you have poor credit. Any insurer that uses a credit score to determine rates and premium payments also factors in things like driving history and whether or not you have filed any accident claims. They also look at your age, where you live and where the car is stored or parked to come up with your risk factor.

Auto Insurance Rates and Your Credit Score

The greater a risk you appear to be or your car appears to be to an insurer, the more you pay for coverage. For instance, young drivers are a greater risk than older drivers. This is not because car insurance companies have anything against young people. It is because young drivers have less experience behind the wheel and, therefore, are more susceptible to getting into accidents. The safety features on your car also get factored in when a car insurance company issues rates.

Many people find the credit score basis for determining car insurance to be unfair but, this is not the only thing that goes into determining your auto insurance rates. You can still save money on coverage, especially if you do a comparison shop of rates from several insurers.

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