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Does Good Credit Lower Your Car Insurance?

Insurance agents are asked all the time “Does good credit lower your car insurance?” The answer depends on where you live. In some states, drivers with low credit scores are forced to pay more for their auto insurance. Luckily, drivers in California do not have to worry about this. There is a law in the state against charging drivers more for auto insurance because of bad credit. This is great news for people who have made credit mistakes, but are still responsible drivers. Just because a person has missed a few credit card payments or overspent several years ago does not mean he or she will have to pay more for their auto insurance if they are a safe driver.

Searching for auto insurance can be a frustrating experience when you have bad credit. Financial mistakes remain on your credit report for up to 10 years, so even if it has been nearly a decade since your credit problems, you can still be judged for years to come. You might be the safest driver in the world and you might choose a vehicle that is filled with safety features, but if your credit rating is poor, you could pay an arm and a leg for auto insurance. Drivers in California need to understand how lucky they are to not be judged by their credit history. Even if the cost of living is higher and other things might cost a bit more in California, knowing you are being judged only for your driving record and features of your vehicle is reassuring.

Even if credit scores are not a concern for those driving in California, there are a number of other things that can affect insurance rates. Drivers have a great deal of control over how much they pay for auto insurance, so take your time before settling on an insurance policy. Insurance companies take into consideration driving records, the kind of car you drive, how much you drive, and where you drive. If the cost of auto insurance is a concern, you can make adjustments in your life to improve your insurance rates. You can also shop around for companies that give you the best rates. Compare policies from different companies to find the best value. Since your credit score is not a concern in California, you can truly comparison shop and be judged strictly by your driving record and vehicle. This provides greater flexibility and makes it possible to find a great rate on auto insurance. If you are shopping for auto insurance and you want to compare rates before making your final choice, use our free online search tool to make your search easier.

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