Bad credit can have an impact on the premium rates you are asked to pay for car insurance when first applying. Many auto insurers utilize credit scores to make underwriting decisions on new applications.
If you have bad credit take steps to improve your score. Shop around for auto insurance from companies that use more traditional data in pricing policies. Or stick with your current carrier and drive safely. Of course you want to drive safely no matter what!
That is a great question! Unfortunately having bad credit can have an affect on your insurance rate. Many insurance companies look at your credit score and history to "determine" your level of trustworthiness and responsibility. The financial world is very interconnected, and having some blemishes on your credit can have effects in all kinds of unexpected ways. The good news? Often your credit rating isn't as bad as you think. I'd advise you to get a free copy of your credit report, and look at what you can do to clean it up, and improve it. More good news? They will look more at your driving record, car, and it's daily mileage than your credit rating. I hope that helps, thanks for asking!
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Many auto and property insurance companies have been using credit along with driving history etc as part of their underwriting evaluation process for quite a number of years. In a word, yes, your credit history does have an impact on the pricing that is offered to you for car insurance as will as property insurance.
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If you have bad credit take steps to improve your score. Shop around for auto insurance from companies that use more traditional data in pricing policies. Or stick with your current carrier and drive safely. Of course you want to drive safely no matter what!