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: