As we all know, credit score dictates a lot of aspects of life, for example, when applying for a credit card, getting a mortgage for a home and purchasing a new car. This may come as a shock to you, but credit score can also affect your car insurance rate. Most companies in the U.S. use credit score as a way to help assess risk while determining an insurance rate. The states that don’t practice using credit score for insurance rates are California, Hawaii, Massachusetts, Michigan, and Washington.
A higher credit score, anywhere between 670 to 800, will lower your car insurance rate when receiving a quote. In turn, this does mean that having a lower credit score, anywhere between 300 to 500, will ultimately show higher insurance rates, which could be doubled in comparison to someone who has a higher credit score. It is shown that people who have a higher credit score will have a reduction of about 25% when looking at insurance rates. On the brightside, Cure Auto Insurance doesn’t utilize a customer’s credit score when determining rates for our auto insurance!
