How Your Credit Score Affects Your Car Insurance

When most people think about car insurance costs, they usually focus on things like their driving record, vehicle type, or age.

But there’s another important factor many don’t realize: in many states, your credit score can also impact your insurance rate.

Even with a perfect driving record, a low credit score can still lead to noticeably higher premiums.

Why Credit Scores Matter:

Insurance companies don’t just look at how safely you drive — they also assess your financial behavior.

Statistically, drivers with lower credit scores are more likely to file claims, so insurers often see them as higher risk.

In simple terms:

• Good credit = lower premiums
• Poor credit = higher premiums

It’s not always about your driving; sometimes it’s about how you look on paper.

How Much More Could You Pay? The difference can be significant.

Drivers with poor credit may pay 50% or more than those with excellent credit — costing hundreds, sometimes thousands, extra each year.

You’re not stuck.

You can:

• Improve your credit by paying bills on time and reducing debt.
• Shop around — some insurers weigh credit less heavily than others.
• Ask about discounts for safe driving, bundling policies, and loyalty rewards. 

Even small credit improvements can make a real difference in your insurance costs.

Bottom Line

Your credit score doesn’t just affect loans and credit cards — it can quietly raise your car insurance bill, too.

By improving your credit and comparing your options, you can save more than you think — and keep more money in your pocket where it belongs.

🚨 Don’t wait until your next bill surprises you — check your credit, compare your options, and lock in a better rate before you pay more than you should.