Auto - Buying and Insurance
Credit Scores Can Affect Rates
Insurance companies deal with risk. Auto insurers do everything they can to understand risk, and to price their coverage accordingly. Insurance companies feel a person’s credit score is a solid indicator of their likelihood of being in an accident or filing a claim the lower the score, the greater the likelihood.
So, if your credit score is currently low, try hard to improve your score. Check out your credit report, look for inaccurate entries, and take steps to correct those entries. Pay your bills on time and close unused accounts. Your credit rating will improve and your chances of getting cheaper auto insurance coverage will improve and so will the cost of loans you may take out down the road.