Will My Credit Affect My Auto Insurance Rates?

Insurance agents often check your credit report as part of the process of giving you a quote on auto insurance. Because statistics have shown that drivers with a low score are more likely to make car insurance claims than drivers with a high score, insurance companies often include credit history in their formulas for calculating a driver’s risk. Rather than using traditional credit scores, insurance companies generally use an insurance risk score, which is based on information on your credit report, but is skewed toward the data that is most closely linked to auto insurance claims.

While having exceptionally good credit won’t get you a discount on your auto insurance rates when compared to having decent credit, you may end up with higher rates if you have exceptionally bad credit. By law, insurance companies are required to let you know if your credit report affected your insurance rates, and to give you instructions on how to get a copy of your report.

To ensure you’re getting the best rate possible, it’s important to maintain your credit score by paying your bills on time and not taking on more debt than you have to. You should also check your credit report for accuracy before applying for auto insurance in Greenbelt, Cloverly, and surrounding areas. If you find errors, it’s easy to file a dispute and get them corrected.