1. 47 POINTS
    Kevin Haney
    A.S.K. Benefit Solutions, New Jersey
    Credit scores are often used by auto insurance carriers to determine premium rates. These scores have proven to be predictive of future accident claims. 

    Auto insurance companies use credit reports in underwriting, but they do not report premium payment information to the bureaus. So there is no direct impact on your credit rating if you fail to make premium payments.

    However there may be a variety of indirect impacts on your score. If you are pulled over and fail to show evidence of insurance you may have to pay a fine. If you have an accident while uninsured, you may face large expenses for repairs, liabilities, medical expenses, and more. These added expenses could easily force you to become delinquent on debts that are reported to credit bureaus.
    Answered on April 15, 2014
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