You’ve never been in an accident, but every time you get a quote from a car insurance company, it seems high. What’s the deal with that? There are many factors involved in determining insurance rates, but at some point, we all ask ourselves, “Does credit score affect car insurance?” Many consumers do not realize to what extent your credit can impact the cost of your auto insurance.
Do insurance companies in your state check credit?
Not every state allows the use of credit to be a determining factor in insurance prices, but of the states that do allow it, it’s likely your score will be checked. FICO reported 95 percent of auto insurers to look at credit-based insurance scores, also known as your auto insurance score. But before you wonder what your insurance credit looks like, check and see if your state allows this kind of report by visiting your state’s insurance department website. By viewing your state’s requirements, you can find out whether or not no credit card check insurance is available statewide.
“Wait…is a credit score and credit-based insurance score different?”
scores refer to your spending habits and how you use your line of credit, they
are different. A credit-based insurance score delves into your credit history to
predict how likely you are to experience an insurance loss, such as an injury
or damage to a vehicle caused by a collision.
How long you’ve had your line of credit
The type of credit you have (cards, loans, etc.)
While it may feel mysterious, insurers cannot use random factors to determine insurance premiums—they must be supported by research. And research has shown that there is a connection between your auto insurance score and how much risk you carry.
“I just got my auto insurance credit score…is it good?”
What is a good auto insurance score anyway? Much like your normal credit score, a score of 700 or more is generally considered good. Your number can range anywhere from 300 to 900. If you find yourself in the group of people with scores above 800, congrats! You carry little risk. For the rest of us, there are still affordable insurance options.
You can improve your score.
(SafeAuto included) use a variety of factors to determine your premium, so your
credit score won’t be the only piece of the puzzle. So, if you’re worried about
your car insurance, bad credit
might not prevent you from finding the coverage you need! That’s why when you get
a quote at SafeAuto.com,
we ask you questions about your location, gender, age, and more. If you’re
looking for ways to improve your credit there are a few simple actions you can
take, such as:
Paying all your bills on time
Minimizing the balance on your credit card
Checking your credit report and disputing any
Managing the number of credit cards you have
Remember, if you have bad credit, car insurance is not out of reach!
“My credit isn’t great – can I still get car insurance?”
Good news. Bad credit car insurance exists! Car insurance is a legal requirement, and as such, we believe everyone should have access to auto insurance they can afford. That’s why we offer low minimum down payments and payment options. Imperfect credit shouldn’t stop you from driving. That’s why SafeAuto is insurance for the rest of us.
January 27, 2020
Leading Provider of State-Minimum Car Insurance Enters Colorado
For more than 25 years, Safe Auto Group Agency, Inc. (SafeAuto) has provided affordable car insurance to those who need it most, from Pennsylvania to Oklahoma. Now, SafeAuto is expanding its offerings in the west to accommodate the needs of consumers in Colorado. In addition to the 17 states SafeAuto currently serves, SafeAuto now provides […]