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.
Published in by CARCHEX on November 13, 2014