Does my credit score affect my car insurance costs?

Question

Someone told me it did... but that just doesn't make sense!

Answer 1

What affects the insurance rate is your age, gender, driving record (tickets, accidents) , the number of years you have driven, school marks( that one blows me away), type of car driven, where you live, and how far you travel each day. Not credit score.

Answer 2

In most cases, YES, your credit score does affect your insurance premiums.
Your insurance premium is derived by your age, gender, location, marital status, car you drive, driving record, and credit score.
It is illegal in most states for an insurance company to decline you for credit alone but it usually is factored into the premium.
There may be some companies that are not running credit scores but most are.
There are 2 reasons for this:
1) If you have bad credit... that means that you dont pay your bills. If you dont pay your bills, and you think logically, you may not pay your insurance bills on time or at all. This will result in cancellations, reinstatements and a whole bunch of paperwork that costs the insurance carrier time and money.
2) Studies have shown that people with lower credit have a higher likelyhood of submitting a claim. Whether they cant afford to repair the car themselves or they are commiting insurance fraud to get money.

I know It sucks. I actually had my identity stolen quite a few years ago and it affected my credit for 5 years. I had tp pay more interest on my credit cards as well as higher insurance premiums. It wasn't fair but there's nothing I could do about it.

Answer 3

It makes perfect sense. Someone with a credit score of 110 is far, far more likely to be involved in a collision, theft or other claim situation. It's not personal, just a matter of number crunching. Statistically speaking there is concrete evidence that shows people with a very large credit score equals responsible, stable insureds that don't sue people, don't have their cars stolen, don't drive drunk and don't find their cars burned to the ground under an overpass when the payments get behind.

Answer 4

Yup, afraid it does and no it doesn't make sense. As far as they are concerned if someone has a bad credit score they are running a greater risk with a person as a customer. They have whole studies on how those with bad credit run insurance scams and all kinds of other lame "studies" to prove that those with a low score are less desirable as customers and should have higher rates.

Answer 5

Yes it does. It's usually used in a combination of other factors ex: what kind of car, how old you are, # accidents/tickets, etc. A bad credit score alone with everything else being good should not affect the cost too much.

Answer 6

Yes it does, sometimes drastically. Most major insurance companies now rate based partially on an "insurance score". Part of their reasoning is that a persons credit score is a reflection of their past payment history. They have also done statistical analysis that suggests that the less financially stable a person is the more likely they may be to file claims, inflate claims, even commit fraud or arson.

Answer 7

What type of car you drive and its safety features:
Generally, the more expensive the car, the more you pay.
Anti-Lock Brake, Alarm systems, Airbags help in getting discounts

Where you drive:
Generally, due to higher rates of vandalism, theft and accidents, urban drivers pay more for insurance than those in small towns or rural areas.

How much you drive:
People who use their car for business and long-distance commuting normally pay more than those who drive less.

Your age, sex and marital status:
Accident rates are higher for all drivers under age 25, especially young males and single males. Insurance prices in most states reflect these differences.

Your driving record:
Drivers who cause accidents generally must pay more than those who are accident-free for several years.

Your credit history:
Studies have shown that credit history is a powerful predictor of future auto insurance losses. Many insurance companies consider certain credit characteristics in addition to many other factors when determining an individual's rate.

Answer 8

Yes, credit affects your rate alot with all of the major companies. When I had bad credit I just went online & found a company that didn't use credit. You may want to try getting a quote online. I am paying less than ½ of what I was before I did.

Auto Quotes: http://www.insureme.com/landing.aspx?Refby=615451&Type=auto

Take care,
Casey

Answer 9

regularly, certain, your credit status does impression your coverage rates. Your coverage proper type is derived by technique of your age, gender, area, marital status, motor vehicle you force, utilizing list, and credit status. that is unlawful in maximum states for an coverage agency to decline you for credit on my own notwithstanding it in many cases is factored into the proper type. there will be some organizations which aren't any further operating credit ratings yet maximum are. There are 2 causes for this: a million) once you've low credit... that signifies that you dont pay your charges. in case you dont pay your charges, and also you imagine logically, you would no longer pay your coverage charges on time or in any respect. this can outcome in cancellations, reinstatements and a lot of workplace artwork that prices the coverage provider time and money. 2) learn have shown that those with decrease credit have a larger likelyhood of filing a declare. even if or not they cant have the funds for to fix the motor vehicle themselves or they are commiting coverage fraud to get money. i recognize it sucks. i in my opinion had my identity stolen really many years in the past and it affected my credit for 5 years. I had tp pay extra pastime on my charge playing cards as well as larger coverage rates. It wasn't honest yet there is not any longer some thing i might want to do about it.

Answer 10

You can get quotes in just a few minutes at http://HELP.INSUREFOREVERYBODY.INFO/-rdryqSX603

RE Does my credit score affect my car insurance costs?

Someone told me it did... but that just doesn't make sense!