How does your credit impact your auto insurance?

How does your credit impact your auto insurance? It’s a fact that catches many off guard-your credit score can have a significant impact on your auto insurance rates. This means that maintaining a good credit score isn’t just important for securing a mortgage or a personal loan; it’s also a key factor in getting lower auto insurance premiums. It’s a responsibility that can put you in control of your financial future.
Indeed, most auto insurance companies use your credit score as a key factor in setting your insurance policy premiums. Those with excellent credit and a clean driving record typically enjoy lower auto insurance rates.
To put it in perspective, a poor credit history can lead to an increase in your auto insurance premiums by as much as 72% compared to someone with good credit.
It’s important to understand that this isn’t a random decision. Insurance companies have solid data that shows customers with better credit tend to file fewer claims and are involved in fewer accidents. This is why they can offer lower premiums to these customers, passing on the savings from reduced risk.
If you need clarification on your credit score, you can request a report from the major credit reporting agencies: Equifax, Experian, and TransUnion. You can do this by visiting annualcreditreport.com. The Federal Trade Commission recommends checking these reports once a year.
In addition to credit, other factors influencing insurance premiums include driving history, age, gender, vehicle type, coverage options, location, and insurance history.
If you’re looking for affordable and reliable auto insurance, call Univista Insurance. How does your credit impact your auto insurance?

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