Best Cost Car Insurance

What does your credit paying history got to do with paying higher/lower car insurance rates?

Public Comments

1. Responsibility.
2. Nothing, insurance companies are only concerned with your driving history, claims etc, [ provided you pay your premium, they don't care about earnings, credit-rating, assets, etc. ]
3. My opinion is that is should have nothing to do with insurance rates. In some states your credit counts but not in all states. In California your credit still does not count and that is the way it should be. If your laws are different then call your lawmakers to change the law so your credit is not allowed to affect your premiums.
4. It's supposedly a sign of responsibility. But, what about people who have been so responsible that they've never gone into debt in the first place?
5. Ins companies are very concerned that you will be making your premium payments on time. If you have a poor credit history, why would an ins company want to deal with someone who won't be paying their premium bills on time???
6. ~~Credit history can affect everything you need, i.e., jobs, insurance, renting, home buying, and so forth. This is the only tool a company has to see what kind of a responsible adult you are.~~
7. Well, the real answer is, people with credit scores under 600 have more claims, and higher amounts paid out, than people with scores over 700. It's a direct corrolation - the lower the score, the more often, and the more severe, the payout. What you're probably really asking is WHY do people with lower scores have higher/more frequent claims. And the answer to that is, no one really knows, because no one has researched it. It doesn't MATTER. All that matters is, the relationship between score and claims is real, and substantiated. Just like, WHY do 16 year old boys have more accidents? No one knows for sure, and it really doesn't MATTER. They just do. So they pay higher rates, too.