Obviously, your driving record has an impact on the estimated risk your insurance company assumes by taking you on as a driver.
Also relevant to your rate, according to insurance companies, is your credit score.
The practice of using credit scores in setting insurance rates has been around for at least 20 years.
Does credit score affect car insurance?
credit scores count for car insurance too. Many U.S. car insurance companies use credit-based insurance scores to help determine risk. And studies have shown that there’s good reason to use credit-based scoring in developing rates.
How much does credit score affect auto insurance?
According to The Zebra’s “The State of Auto Insurance Report for 2016,” drivers with poor credit scores (524 or less) have an average insurance premium of $2,411, while drivers with excellent credit scores (823 or higher) pay only $1,130 on average, which is a savings of 53 percent.
What is a good auto insurance credit score?
The answer is, once your claims filing history and your credit score are obtained by an insurer, they are combined to generate your total insurance score. This number will range between a low of 200 and a high of 997. Insurance scores that fall into the range of 770 or higher are typically considered to be good.
Do you need good credit for car insurance?
Insurance companies say the most important factors for a good credit-based insurance score are a long credit history, minimal late payments or past-due accounts, and open credit accounts in good standing.
Photo in the article by “Moving at the Speed of Creativity”