In today’s blog, we tackle one of the most common questions about auto insurance: does your credit score impact your insurance rates? Keep reading to discover the answer.
Does Your Credit Score Impact Your Auto Insurance Rates?
The answer to the question “Does your credit score impact your auto insurance rates?” is “It depends.”
More specifically it depends on where you live.
In almost every state, insurance companies can use your credit score as one of the factors to determine your car insurance rates.
In those states, a higher credit score usually translates into lower insurance rates. And the difference is nothing to sniff at. For example, studies have found that poor credit can double the rates you pay for auto insurance.
However, it’s important to note that insurance companies CANNOT do this in California. As a result, in the Golden State, your credit doesn’t influence your auto insurance rates and don’t impact your ability to renew your policy.
In addition to California, other states that have banned or limited this practice include Hawaii, Maryland, Michigan, and Massachusetts.
What To Do if You Live in a State Where Credit Score Impacts Auto Insurance Rates
If you live in any state where your credit score is a factor in determining your auto insurance rates, there are some things you can do to avoid that your rates increase disproportionately. Here are some tips:
- Maintain a good credit score by paying your bills on time.
- If you fall behind on your payments, settle them as soon as possible.
- Check your credit report and dispute any inaccurate or duplicated information.
- Remember that you have the right to get a free copy of your credit reports every 12 months from each of the three nationwide credit bureaus.
If you have other questions about auto insurance in California, don’t hesitate to contact the experts at Delgado’s Insurance. Our team stands ready to offer assistance and answer all your questions.
Delgado’s Insurance: Affordable Auto Insurance in California
If you need dependable and affordable insurance in the Golden State, look no further than Delgado’s Insurance.
We have locations in Riverside, California, and Bloomington, California. Get in touch today by telephone (951-361-0084, 909-421-9003), email (mail@delgadosinsurance.com), or through our social media accounts (Facebook, Twitter)!
