Why do auto insurers 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. Note that certain states have laws that don't allow the use of credit information as part of car insurance pricing.
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 Progressive may include multiple car insurance discounts to help you save on your auto insurance, such as:
- Multi-policy bundling: Bundle your homeowners insurance with auto 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