Do car insurance companies look at your credit score?

After a bit of a wild youth, I'm currently working on rebuilding my credit. My old car is on its last legs, so I will need to purchase a vehicle in the next couple months, but will a car insurance company look at my credit score? Will I have to pay more on my insurance for old mistakes that I'm working hard to fix?

Answer
“Rebuilding your credit can definitely seem overwhelming, but it will benefit you in the future! I’m happy to report, though, that your credit score is only one of the factors involved in calculating your insurance rate.
Typically, car insurance companies will look at your:
  • Address
  • Driving record
  • Credit history
  • Age
  • Vehicle’s make and model
Since car insurance is risk based, having a low credit score can influence your rate. Insurance companies may see you as a higher risk to insure, which means you may have to pay more for your insurance.
However, not every company rates policies the same. While your credit history may be weighed heavily by one company, another may not rate it as negatively.
In addition to this, some states—currently California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, and Utah—restrict or ban credit scoring for insurance companies. This means that if you live in one of these states, your credit score might have a smaller or nonexistent impact on your rate.
If you want to make sure you’re getting the best rate for your coverage, it can be helpful to shop around for quotes. One of the fastest and easiest ways to do this is through Jerry—we’ll get you customized quotes from multiple providers instantly so you can make sure you’re getting the best deal on the coverage you need.
Rebuilding your credit takes time, but it’s well worth the effort. Best of luck!”
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Emily Maracle
Answered on Sep 10, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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