If you're looking to purchase a new automobile insurance plan, you may find yourself wondering what factors affect your auto insurance. As you research, you may encounter information that makes you wonder if your credit score plays a direct role in the amount you pay for auto insurance. Keep reading to get answers to a few of the questions you may have about auto insurance and your credit score.

Does Your Credit Score Impact Your Automobile Insurance Plan?

Your credit score may impact the amount you pay for auto insurance. Ultimately, it depends on what state you're looking to obtain auto insurance in. In our experience, some states, including Hawaii, Massachusetts, Michigan, and California have laws that prevent auto insurance companies from looking at your credit score when determining how much your auto insurance rate will be. Other states, including Oregon and Utah, have laws that prevent your credit score from being used to deny you auto insurance coverage.

How Much Does Your Credit Score Impact Your Auto Insurance?

If you don't live in one of the states listed above, your credit score can have a huge impact on how much you pay for auto insurance. According to The Zebra, an insurance comparison site, individuals with a low credit score pay up to around 114% more than drivers who have a great credit score, or a score of 750 or higher. As such, it's important to maintain a great credit score, in addition to a good driving record, if you want to obtain the lowest possible auto insurance rates.

Why Does Your Credit Score Impact Your Auto Insurance?

According to our team of auto insurance experts, your automobile insurance policy may be higher if you have poor credit for a number of different reasons. If you have poor credit, you're less likely to pay your bill, which can lead to your policy lapsing. Additionally, we've seen that individuals with lower credit scores are more likely to file an auto insurance claim than those with higher credit scores.

If you're looking to obtain a new automobile insurance policy, your credit score may impact your automobile insurance plan rates depending on the state in which you live. Our team would love to help you find the right policy. Contact Insurance World today to get started.