how credit can affect car insurance rates

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Poor or Bad Credit Means Higher Auto Insurance Rates

Thursday, April 8th, 2010

When trying to get cheap auto insurance, you need to have excellent to good credit for you to be eligible for the lowest possible rates. Having poor or bad credit often times affect your auto insurance premiums.

Here is why auto insurance companies like people who have good credit. Studies have shown that if you’re conservative with your finances, you manage your finances and credit well, typically, you’re also going to be an individual who is less likely to be involved in an accident.  You’re going to be someone who is more likely to obey speed limits. You’re going to be someone who is less likely to drive impaired. You’re going to be less likely to be someone who fails to perform maintenance on your car.

Auto Insurance companies believe that people with bad credit generally make more claims then people with good credit.

Always be sure your credit report is accurate before you get an insurance quote.