It’s important to know that car insurance companies are beginning to check credit scores more and more when someone applies for a new car insurance policy. You might not think that your credit score should have anything to do with the potential that you would file a claim. However, insurance companies use your credit score as a method to calculate premiums. The better your credit score, the lower your premium will be and vice versa. If you have a low credit score, you might pay a higher premium.

This is important to know so you are not surprised with a high premium, should you have a low credit score. You may have never had to file a car insurance claim before, but might still end up with a high premium based on your credit score. You should always try to keep a good credit score. However, if you are not satisfied with an insurance premium, shop around to find something with which you will be satisfied.