17 Nov Does Your Credit Score Affect Your Insurance Rates?
Your credit score is a three-digit number between 500 and 900 that is needed for the larger purchases in life, including loans, mortgage and vehicles. But have you ever thought your credit score could affect your insurance rates? Insurance companies have been using credit scores since the 1990’s to determine rates per customer. When in the market for car insurance, car insurance companies use your credit score to predict the likeliness that you will file a claim. According to the Consumer Report, drivers in North Carolina are expected to pay 73% more with a poor credit score. Across the nation, there is a $214 average difference drivers pay for car insurance with good credit scores vs. bad credit score.
With how much weighs on your credit score, it is important to know what influences your credit score. Factors that affect your credit score include late payments, open bank accounts and their standings, a short credit history, and a high number of credit inquiries. A credit score that is 700 or higher is considered a good score. If you are looking to save on car insurance, you should actively be watching and responding to your credit report. Credit-based insurance has proven to be an effective technique when it comes to determining pricing for car insurance to give users a fair and accurate price. If you have any questions about your credit score and how it affects your car insurance rates, call one of our local agents at 704-821-4460. Keep connected with Spivey Insurance Group on Facebook, Twitter, Pinterest, and Google Plus!