Credit scores are something that can basically make or break some of your purchases in life. One thing that is heavily impacted by your credit score is your car insurance premium.
Find out what Save Money Tricks has to say about how your credit score affects your insurance premium.
Hi everybody, welcome back. I’m Devyn Howard and today, we’re going to talk about whether or not your credit score affects your car insurance rates. Car insurance companies consider a lot of different factors, including the type of car you drive, before they give you a rate. Here are some of the rating factors that determine your car insurance rate, your driving history, where you live, your claims history, the annual miles used, how your vehicle is used, like whether it’s for work or personal reasons, your occupation, and your credit score.
Yes, your credit score does affect your car insurance rate. Maybe you’ve made a few late payments or you had to declare bankruptcy at some point, that will affect your rates. Nine out of ten care insurers will use a credit-based score when determining what rate to give you. They’ll look at the length of your credit history, they’ll look at how long you’ve been paying back loans, they’ll look at what type of credits you have opened, maybe student or mortgage, and they’ll look at your payment history, like how many times you’ve been delinquent.
Car insurance companies look at all of this to figure out how much of a liability you are if they were to bring you on. If you raise your credit score, your premiums will probably go down. The Federal Trade Commission is an excellent resource to look at if you want to learn how to improve your credit score. We have a link right down there if you want to get a free credit report, so make sure you check that out if you’re interested.
Ultimately, if you want a low car insurance rate, you’re going to need to shop around. Luckily, we have a really great tool for you to do that. You just need to enter in your information and it’ll bring up all the different insurance rates in your area. Go to www.savemoneytricks.com/car-insurane, enter in your info, and everything will be right there, right where you need it. It’s so simple.
All right, you guys. Well, I hope you found this video helpful. Make sure you tune back in later for some more videos all about car insurance, credit companies, anything that you could ever imagine, basic, helpful life stuff. Give this video a thumbs up, click subscribe and tab the bell for notifications, and I will see you here later. Bye.