Not everyone knows that their credit history can affect auto insurance premiums. Besides your driving history and the type of vehicle you drive, your credit score can influence your auto insurance rate. Therefore, it is worth knowing how your credit history can affect your insurance rates?
Impact Of Credit History On Auto Insurance
Your credit score history can affect your auto insurance rate. Insurance companies tend to charge higher premium rates for people with lower credit scores because it cost them more money. Those with higher credit tend to get a lower premium. Your credit score history is just one of the factors that insurers use to help determine your auto insurance rate. They also use your driving history, claims history, number of miles driven, age and gender, vehicle make and model and other factors to determine your rate.
Why Do Insurance Companies Review Credit Score?
Insurers check your credit history to assess the risk they’ll take to insure your car. People with a higher credit history are less likely to file claims, while people with a lower credit score history are more likely to file claims. You’ll pay a higher insurance rate if you have a low credit score history and a lower rate if you have a high credit score.