Does my credit score affect my car insurance costs?

Deirdre O

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.

Nunoyvgvna Awi

your credit score affects almost everything in your life now. and yes with most insurance companies, it does effect it. so does renting an apt or the deposit.

CowboyBill

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.

McLaren

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.

lonestar

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.

christopherc

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.

CaseyAngelEyes

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 Â½ of what I was before I did.

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

Take care,
Casey

rob1963man

To those that answered yes:

How come my insurance company (State Farm) NEVER runs my credit? In fact, I just bought and insured a new car with them and they never ran my credit.

Enter Your Message or Comment

User Name:
User Email:
Post a comment: