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Are auto insurance rates determined by credit score & not driving record?
Question : Are auto insurance rates determined by credit score & not driving record?
I see a lot of people complain that they have a good driving record but bad credit & their insurance rates go up..
Is having good credit better then having a good driving record?
credit insurance
Best answer:
Answer by David L
A good driving record is better than a good credit rating. A good driving record shows that you are less likely to have an accident. A bad credit rating means nothing as long as you keep making the insurance payments on time.
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#3 written by Howard L 1 year ago
Bad credit is not as important as driving record but after your age it is probably the largest factor in determining your rates. The insurance company looks at factors that indicate how big a risk you are. How likely are they to have to pay a claim? To begin with poor credit indicates irresponsibility. Irresponsible people are more likely to have accidents.
Also, it’s not the credit score itself but rather credit score as an indicator of income level. They use credit score because they can’t ask you to file a financial statement or at least it would be too much trouble to read it. Credit score is simple. Poor people file more claims than richer ones because they can’t afford to repair some things on their own, poor people are more likely to exaggerate damage and injuries trying to make a few extra bucks, and in extreme cases are more likely to commit outright fraud, staging accidents and destroying their cars.
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#4 written by oklatom 1 year ago
No, credit score is one of many factors they look at to set your level of risk and your rate.
A bad driving record would carry more weight than a bad credit score. A bad credit score might be something that would not let you make monthly payments though, and you would have to pay the full amount in advance.
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Credit score,driving record and zip code are all factors.