Does my credit rating affect my car insurance rates?
Myth: My credit rating doesn’t matter when dealing with car insurance
Your credit rating does, in fact, matter when it comes to determining car insurance rates.
Myth:
My credit rating doesn’t affect my auto insurance rates at all.
Fact:
It is true that many insurance carriers do, in fact, check your credit score when determining your auto insurance rates. This can be particularly true when you increase your coverage or when you are apllying for new coverage. If you have extremely poor credit, it is even possible that a company may determine that you are too risky to insure.
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2 Responses to “Does my credit rating affect my car insurance rates?”
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Marcy Says:
Do all insurance companies check credit or only some? If only some is there any way to know which do and which don’t?
September 19th, 2009 at 6:55 pm -
Matt Says:
No, all insurance companies do not check credit reports, and those that do check don’t always check. Furthermore, those that do check credit reports may be limited, depending on state law.
Figuring out whether or not your credit report will be (or was) used to determine insurance rates will take a little research on your part. Many states (but not all) are now requiring insurance companies to disclose and/or get permission to check either a potential client’s or a current client’s credit report. And some states are limiting insurance companies’ practices of using credit report information even more.
To find out your state’s policies regarding insurance companies and credit reports, visit your state insurance Web site, which can be found on the NAIC State Web Map.
September 22nd, 2009 at 10:11 am
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