Your credit score is one of the most important factors that insurance companies use to determine your car insurance rates. In fact, people with poor credit can pay two or three times more for car insurance than people with good credit.
There are a few reasons why insurance companies use credit scores to set rates. First, studies have shown that people with poor credit are more likely to file claims than people with good credit. Second, people with poor credit are more likely to let their policies lapse.
If you’re paying too much for car insurance, there are a few things you can do to improve your rates:
You can also contact an independent insurance agent to help you find the best coverage for your needs at the best price.
Here are some additional tips for improving your credit score:
By following these tips, you can improve your credit score and save money on your car insurance.