Do Credit Scores impact Car Insurance Rates?
Written By: Nick Nguyen | Read full profile
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That’s right. When you’re planning to purchase car insurance, the insurance companies will typically run a soft credit inquiry to help figure out the best rates available for you. Now if your credit score isn’t that great...uh oh.
Remember, Credit Scores measure your reliability! If you’re responsible, pay back debt on-time and consistently, can manage multiple different types of debt, and aren’t overspending, then companies will jump all over you! They want the low-risk customers that know what they’re doing, aren’t really radical or spontaneous people who may find themselves in a rut.
There’s probably some statistics and psychology out there too about how if you’re low-risk in other things, you’re more likely to be a safe driver too, but I don’t want to bore you with the details (nor do I want to do the research...for this post anyway).
The point is, if you’ve got a credit score boost all of a sudden, take 5 minutes to quickly call your car insurance company and ask them if they can re-run your credit and see if they can offer you a better rate. I did that with my car insurance company at the time (Geico) and got a credit for $44.94.
*Nguyening Lifestyles is not a registered financial service provider and does not give financial advice. All information in these posts are for entertainment purposes only. Nguyening Lifestyles is not liable for any actions or outcomes that transpired after your reading of the following post.
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