Does Bad Credit Affect Car Insurance Premiums?
For years car insurance companies have used your credit history in order to help them determine the likelihood that you will file a claim on your car insurance. According to studies like the one conducted by the industry group, the Insurance Information Institute, drivers with low credit scores tend to file 40% more insurance claims with their car insurance companies. It is estimated that those with poor credit scores can find themselves paying anywhere between 20% and 50% more for insurance than someone with better credit. How Much Does Bad Credit Affect Car Insurance? No one knows for sure how bad credit affects car insurance premiums for individuals. That is because car insurance companies keep it a secret. While most experts … Read more