💰Your Credit Score and Car Insurance

Did you know your credit score doesn’t just affect your loans and credit cards—it can also impact your auto insurance rates?

Insurers use a credit-based insurance score to determine how much you pay. A lower score often means higher premiums, while a stronger score can unlock discounts. In some states, insurers aren’t allowed to use credit scores—but in most, it plays a big role in pricing.

How to Lower Your Insurance Costs

Even small credit improvements can save you money:

• Pay bills on time—even one late payment can hurt your score.
• Lower your credit card balances—keep utilization under 30%.
• Check your credit report for errors—mistakes could be costing you.
• Avoid unnecessary credit applications—too many inquiries can drop your score.
• Keep old accounts open—a long credit history helps your score.

Even if your credit isn’t perfect, you can still save:

• Shop around—insurers weigh credit differently. Start here.
• Ask about discounts—safe driver, low mileage, and bundling can help.
• Increase your deductible—higher deductibles often mean lower premiums.

Bottom line: A few simple steps could save you hundreds. Take a moment today to check your credit score and compare quotes—you might be overpaying!

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