Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 16, 2020

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Key takeaways...

  • If you have a credit score below 500, expect to pay 25 to 75 percent more on car insurance than someone with a score of 650 or higher
  • There are other factors as well, like your driving record, your age, and where you live, that affect car insurance rates
  • And no matter if you have a good or bad credit score, there are ways to improve your car insurance rates

The obvious answer is that your credit score in most cases does have an impact on your car insurance rates.

If you have a score well below 500, you can expect to pay 25 to 75 percent more on your car insurance premiums than someone with a credit score of 650 or higher.

It’s important that you maintain a high credit score especially if you are considering comparing auto insurance prices and if you’re thinking of switching.

If you want to switch insurance companies, they will, no doubt, be looking at your credit score and factoring that into your pricing, along with:

If you’d like to get better and more affordable car insurance, enter your ZIP code above and compare at least three to four policies today!

Table of Contents

Credit Scores And Lowering Auto Insurance Rates

To make sure you keep your credit score high, you can do a number of smart things each month.

First off, pay your credit card bill on time – many people don’t realize that missing payments on their credit cards or habitually paying late can hurt your credit score.

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Secondly, be responsible with your money, try not to overspend each month, and get behind the eight ball when you’re faced with mounting credit card at the end of the month — all of these things will drive your credit down.

And last but not least, don’t open up too many credit cards in a short timeframe. Having too large of a credit limit that you are not using can have a detrimental effect on your credit score.

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How To Bounce Back From a Low Credit Score

If you already have a low credit score, all is not lost. You might have to work a bit harder to get a reasonable auto insurance quote, so get four or five quotes instead of just two or three that someone with good credit might be able to get by with.

Ask the insurance company how much they weight the credit score in your price quote. You might not be able to get an exact amount, but it will help you get an idea of what you’re going to pay.

If you’re really lucky, you might be able to get a quote from a company that doesn’t take your credit score into account.

Don’t be afraid to go online and do a car insurance comparison. Even with a low credit score, it will only take you an hour or two to get quotes from Allstate, Progressive, Geico, Farmers, and all the major insurance companies.

If you get a high price quote and it doesn’t make sense to switch carriers, ride out your policy with your current company and try back in six months. You can always work with a credit counseling service to improve your credit score, and you might be saving money in no time!

Are you looking to save money on car insurance? Enter your ZIP code below and start comparison shopping today for better and more affordable car insurance!

References:

  1. https://wallethub.com/edu/what-is-a-good-credit-score/24891/
  2. https://www.privacyguard.com/bad-credit-score-explained.html
  3. https://www.moneycrashers.com/factors-affect-car-insurance-rates/
  4. https://money.howstuffworks.com/personal-finance/auto-insurance/driving-record-affect-insurance-rate.htm
  5. https://www.thebalance.com/maintain-good-credit-score-960513
  6. https://www.credit.com/credit-repair/how-to-improve-credit-score/
  7. https://www.allstate.com/
  8. https://www.progressive.com/
  9. https://www.farmers.com/