McAfee Secure sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

Bad Credit Scores and Insurance Prices

One thing that many drivers want to know about quite frequently besides information on installing luggage racks on their cars is what things will affect insurance prices. There are a lot of things that could cause your insurance rates to go up and there are some things that could have a positive effect on our insurance premiums. One thing that many drivers often worry about is how bad credit scores might affect their insurance rates. This is an understandable worry, as a bad credit score can actually end up having a negative effect on your premium prices.

Simply put, bad credit scores can affect your premium rates in a bad way. Your premiums could go up based on this credit score, so you need to be aware of this before you apply for some coverage. If you are aware of your credit score before you make your applications, you will be better prepared for the rates that you see on your quotes. Sometimes, though, a bad credit score will not really affect your rates, and it will really depend on the insurance provider that you are going with for your coverage.

Why Bad Credit Matters

A lot of companies are going to have a problem with bad credit scores because they are going to relate this to your risk. When you are applying for a car insurance policy, the providers are going to try and discover how much of a risk they are taking by giving you coverage. Based on this level of risk, they are going to come up with a number and this will be what you have to pay for premiums. If you have a bad credit score, it's going to reflect poorly on you and indicate that you have some trouble paying bills.

Read the Fine Print

If you want to know whether or not your bad credit score is going to affect your premiums, then you need to read the fine print provided to you by potential providers. A lot of insurers are going to be open an honest about what they are looking for when it comes to assigning premiums. Some providers are going to look at your credit score because they believe it will indicate something about your responsibility. Not all providers are going to care about this, but you will need to find out before you make an application with a specific provider.

Check with Specialty Providers

One thing that you may want to do to try and help to lower the premiums caused by a bad credit score is to check with a specialty provider regarding your coverage. There are a lot of companies out there who are focused on working with those who have bad credit, and you may be able to get a deal with one of them on your coverage. Check to see if there are any of these companies in your local area, and then you will be able to choose a good one that can help you out.

If you can't find a specialty insurer that will help you with bad credit scores and insurance prices, then you will need to go in search of some regular providers who are going to be willing to give you a good premium even though you have bad credit. What you might need to do is start to compare a few polices to one another. If you can do this, then you might be able to get a really good rate, even though your credit score isn't good. Do what you can to try and improve your credit score before you apply.


FREE Quotes, Multiple Insurers

Zip Code