State Insurers Charging Drivers With Lower Car Insurance Credit Score More!

It seems credit scores are influencing every aspect of our lives. What’s common between credit ratings and driving? You may not realize it, but insurers make a big deal out of it. Shopping for cheap car insurance for bad credit has become top priority for drivers. Insurers refer your credit-based insurance score to determine premiums. It warns them about odds of you making a claim. Except for three states, insurers quote higher premiums for applicants with a poor car insurance credit report than what they do for other drivers.

Drivers with poor credit score and car insurance pay $275/year more than those with good credit in Wyoming do and pay as high as $2000/year more in Michigan. The national Average increase among states is $690/year for drivers with poor credit over those with good credit! This clearly shows how much poor credit can influence your car insurance rates.

credit score and car insurance

Raise Your Auto Insurance Credit Score Northwards!

Ways to improve your credit-based insurance score for lower premiums:

  • Maintain all accounts with on-time bill payments. Late payments or collections pull down car insurance for poor credit.
  • Using credit cards is not bad. Maxing them out is. Credit scores reflect amount owed with respect to your limits. Spend up to 30% only of maximum limits.
  • Stay away from unnecessary credit accounts. If you don’t need it, don’t open it. Additional new accounts spell trouble.
  • Establish some credit history, which is better than having none. Maintain decent credit history continuously to generate good scores. Little or no credit history means shopping for cheap car insurance for bad credit!
  • Accurate auto insurance credit report is important. Mistakes affect scores adversely. Request free copies through AnnualCreditReport.com and follow directions carefully from agencies to fix any errors.
get auto insurance credit report
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