Can My Credit Score Impact How Much I Pay for Auto Insurance?

As a vehicle owner, you might realize there are a host of different things that can impact the cost of your car insurance. What you might be wondering is whether your credit score has an impact. The truth is your credit score can and often does impact your insurance rates. This quick guide can help you learn a little more about the relationship between creditworthiness and auto insurance premiums.

Why Credit Scores Affect Insurance Rates

If you’re wondering why your credit score impacts your car insurance San Diego rates, you should try to see it from your insurance company’s point of view. Drivers who have poor credit scores are often considered less responsible. Thus, they’re often considered higher-risk drivers, since they might be more likely to cause an accident, speed, or otherwise drive irresponsibly.

What to Do if You Have a Low Credit Score

Although your low credit score might impact your insurance rates, this doesn’t mean car insurance has to be overly expensive. Some companies are more focused on credit scores than others when determining rates, which is just one of many reasons it’s wise to shop around and get multiple quotes before buying a policy.

Additionally, paying attention to other factors that affect car insurance rates can help a lot. For example, if you maintain a good driving record, you can keep your car insurance rates at a minimum even if your credit score isn’t very high.

How to Reduce Your Insurance Premiums

Drivers who pay higher premiums for car insurance can also look for other ways to reduce their rates. If you have a low deductible, you might want to think about raising it, because it might help you pay less in premiums. However, you’ll need to be prepared to pay a higher amount out of pocket in the event you need to make a claim. Getting rid of coverage you don’t need, such as rental car coverage if you have a second vehicle you can use as a backup, is another way you can reduce rates.

Lastly, you can of course focus on raising your credit score, which can not only help you pay less in car insurance rates, but also improve your life in other ways. You’ll probably pay less interest on debt and find it easier to qualify for loans, rental apartments, and even jobs.

As you can see, it’s not uncommon for car insurance rates to be impacted by your credit score. However, there are still options for securing affordable car insurance even if your credit score isn’t the best.

If you’re looking for affordable, reliable car insurance and high-quality service, call on the experienced agents at Altra Insurance Services. We can help you with a wide variety of insurance options, including motorcycle, homeowners, and car insurance. Chula Vista residents should call one of our friendly representatives today at 619-474-6666.