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Do credit scores affect insurance rates?

I don't have great credit. I'm getting car insurance for the first time. Will my rates be high?

avatar
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Credit scores are something that
car insurance companies
look at when determining rates. As a result, someone with bad credit may appear less financially stable to an insurance company and a higher risk to submit claims or fail to pay premiums on time.
However, credit scores aren’t the only factor that car insurance companies look at. They also look at your:
  • Age
  • Location
  • Driving record
  • Type of vehicle you drive
If you have a
clean driving record
, your rates may be better than someone with bad credit and tickets and accidents.
Since you’re getting insurance for the first time, expect to pay more as a first-time buyer. Insurance varies from person to person, so you should look at several companies before purchasing a policy. To do this, use the
Jerry
app. This app allows you to compare quotes from numerous insurance companies in just a few minutes.
While your rate may be higher now, it doesn’t mean it always will be. If you maintain car insurance and a clean driving record, your rate should start to decrease as time goes on.”
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