Do Car Insurance Companies Check My Credit Score?

Almost all insurance companies use credit checks to create a credit-based insurance score to help set your rate. Some insurance companies provide auto insurance with no credit check, which might seem appealing if you have a poor credit history. But purchasing car insurance from a company that doesn't check credit doesn't necessarily mean you'll pay a lesser rate than you will with a company that checks your credit.

Why do auto insurance companies check credit?

Your credit history factors into your credit-based insurance score, which insurance companies use to help predict the likelihood of a future accident or claim. Think of it like these two scenarios: a person with a high credit score is seen as someone who has credit accounts in good standing, makes payments on time, and a consistent credit history. On paper, this person is seen as a responsible driver who is unlikely to have an accident. On the other hand, a driver that has just started building their credit, does not have a consistent credit report, or has a history with late or missed payments, is seen as more of a risky driver to insurance companies.

Remember, insurance companies take on your risk when insuring you. Your rate all depends on the likelihood of you having an accident and filing claims.

Credit factors impacting credit-based insurance scores

Favorable credit information can increase your credit-based insurance score, and may include:

• Long-established credit history

• Numerous open accounts in good standing

• No late payments or past due accounts

• Low use of available credit

How else can I save on my car insurance if I have a poor credit history?

Even if your credit history is substandard, a customized car insurance quote from All Motors Insurance may include multiple car insurance discounts to help you save on your auto insurance, such as:

• Multi-policy bundling: Bundle your auto insurance with your commercial, recreational, boat, and renters insurance for savings

• Paid in full: Pre-pay your six-month policy to earn this discount

• Multi-car: More than one car can earn you a discount

• Sign online: An e-signature on your documents and enroll in paperless

Our agents at All Motors Insurance are prepped to give you quotes with and without your credit score. Just let us know your score and we can advise you on the best car insurance program for you. Give us a call at 305-362-6830 or request a quote online and we're sure to give you the best coverage for your budget!