How Does Credit History Affect My Auto Insurance Quote

March 26th, 2014 by admin

We all knows that having a good credit score qualifies you for lower interest rates on loans and better terms on credit cards, but it can also affect the rates you pay for car insurance — sometimes quite significantly, when the savings are measured over time.

This theory actually favors drivers who may have a few blemishes in their driving record but maintain a good credit score. Conversely, drivers who have kept a clean driving record, but have a spotty credit history will be penalized. Unfortunately, as a consumer you think you are insuring your car, while insurance companies look at it as insuring the driver.

So if you know you’re going to be in the market for a new car insurance policy it may be best to pay down some debt beforehand, as to save money on your monthly premiums. Easier said than done, right? But paying off debt may save you money in the long run. You can even think about your credit card payment as an investment in the future.

Learn how to raise your score and lower your premium. Ask us how.
Allison Sanchez at x19 or asanchez@icnj.com