Auto Insurance Quote

The connection between your credit record and what you should pay for auto insurance isn't clear. But auto insurance companies checked the records for millions of policyholders and found that an average person with poor credit, made greater and more expensive claims then a similar person with good credit. So when you get an auto insurance quote, over 90% of the insurers will want to check your credit.

Usually, when you get an auto insurance quote, your credit is judged with a credit score instead of your credit report. There's no one formula for a credit score, but they all tend to measure the same things. How long you've had credit, your bill-paying record, your total amount of debt and the number of credit accounts you have, are common factors in a credit score.

The way that insurers use your credit information varies from company to company. Some use it to make a slight adjustment to their normal rates. Others use it as their sole means for setting rates and won't offer you insurance if your credit isn't good enough. And the only way to really know if or how, your credit affected an auto insurance quote, is to ask the insurer. If there's a problem, they can also tell you how you can take care of it.