The Correlation Between Credit Score And Car Insurance Rate

The Correlation Between Credit Score And Car Insurance Rate

A recent national survey revealed that your credit history is a huge consideration for your auto insurance premiums than your driving record.


In many states, people with poor credit history pay larger premiums than people with drunk driving convictions.

With a good credit score, you can apply for a mortgage or loan among other things. However, most people are not aware that their credit scores also affect their auto insurance rates. Well, here is what you need to know about the correlation between your credit score and your auto insurance rates.You may also qualify for a no credit check insurance from those who provide but it will be expensive according to Sure Buy Car Insurance.

What Is A Credit Score

It's a number that falls between 500 and 900, used to determine your financial stability. Companies and other institutions may refer to your credit score to determine your likelihood of repaying debts. Your credit history is how the number increases or goes down depending on your financial fitness through the years.

How Does It Affect Car Insurance?

For about 2 decades, car insurance companies have relied on credit scores to calculate your premiums. Well, most car owners were not aware of this fact but here is what you need to know about the correlation between the two.

Well, it all comes down to statistics where there is a correlation between your current credit score and your likelihood of filing a claim. Therefore, these insurers will rely on this correspondence and increase the premiums for the drivers with bad credit scores.

How Can A Poor Credit Score Affect Your Car Insurance Rates?

It's popularly known that your auto insurance premiums will be determined by your driving record among other variables such as marital status, gender, age, address or the previous claim history on your vehicle.

Therefore, people who pay a huge premium amount are those with poor driving records, people living in crowded cities with high crime rates, single teenage male drivers and also people who own sports cars or luxury vehicles.

However, the auto insurance industry also uses credit ratings to determine the premiums. People with lower FICO scores are paying a lot more for their premiums than those with the top ratings. Recent reports reveal that 95% of auto insurers consider credit scores to price their insurance policies.

Another survey indicated that a lot of drivers, (a margin of 2:1), didn't approve the use of their credit scores by their auto insurers to determine their premium rating. Your FICO ratings are mostly left when determining your creditworthiness for repaying loans. If your score falls below 580, you have a poor credit rating and you're at risk. However, if you have a score of above 800, you're exceptionally fit financially.

Well, the million dollar question is how long these credit scores will be used to determine your auto insurance premiums? However, there is no direct answer to this since there are many variables in consideration. On the other hand, most of these considerations might be determined in some cases and might vary in different states.

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A Complete Guide on How to Enjoy Divinity in Zagreb, Croatia?



Among many European countries, Zagreb is considered one of the hottest countries in the world. It is a destination where not many tourists go but if they decide to go, they make sure of managing everything in advance – which places to visit, how to visit, and when to visit are some frequently asked questions.

In this article, we have gathered enough information for all those who are about to travel to Zagreb for the first time. As it is the first time only when a tourist feels insecure and quite hesitant in hiring services.

Let's figure out what we need to know prior delving into other aspects. First and foremost, it is about the route you need to take, rent a car service, and place to spend your days. Secondly, it is about their integrities as in further details which might not be required to know in this article.

Where to go to Zagreb?

Following are some areas which are a must to go in Zagreb. Reason being they are the best tourist spots which are profoundly known for their landmarks.

1. St. Mark Cathedral

2. Lotrscak Tower

3. Ljubljana

4. Plitvice National Parks

5. Zagreb Airport

How to go to Zagreb?

Now, the question arises as to how one can go to Zagreb. Is it just through rental pick and drop services? Or do we have other options too? Well, the answer to it is simple: traveling across Zagreb is possible through hiring Auto Europe rental car service. It works with hundreds of drivers and customers with the utmost quality. A number of pickup locations make the visit to Zagreb easier by picking the tourist from the airport and taking them to the hotel. From hotel to the fixed tourist points is another task assigned to these rental car service chauffeurs. Everything is preplanned and at times decided on the spot.

What services to render for traveling to Zagreb?

This company is best in providing all you may need in a good rental car facility. Having said so, it complies best and affordable prices which mostly come in the form of a package. Moreover, each and every trip to Zagreb with Auto Europe is full of excitement and a new car. It helps in maintaining and stabilizing business of the rent a car globally. For instance, in summers, they offer sportscar which totally puts a customer in a state of awe; and in winters SUV is rented for climbing up the mountains.

Last verdict:

In short, cars matter the most and renting a car from this particular company, one tends to have a fun-filled, amazing, and full of memories kind of a trip.

You and I, all those who want to visit Zagreb, must explore the place with the right rent a car service. In this case, rent a car from Zagreb and visit other campsites in the pitches and patches of mountainous, natural, and epic areas.

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