Laywers around a desk - Will My Credit Score Impact my Car Insurance Rates

Will My Credit Score Impact my Car Insurance Rates?

date iconAugust 28, 2020

calculating price

Car insurance is a critical asset. This safeguard covers most, if not all financial expenses associated with automobile accidents. That said, this peace of mind costs money and several factors could determine the rates a driver will have to shell out to secure this important benefit.

A firm of West Palm Beach accident attorneys called Personal Injury of Florida asks motorists residing in this municipality to read the following blog answering the question how a driver’s credit score will impact their insurance rates.

Relationship Between Credit Score And Insurance Rates

Several issues play into the insurance premiums a customer will be required to pay to keep the extended policy in force. This charge is typically most influenced by issues, such as, the motorist’s driving record, age, type of vehicle, accidents and claims history, geographic location, how much the car is driven and the specific reason the vehicle is utilized.

That said, one’s credit history does also often factor into a provider’s final premium charges. More than 90 of all auto insurance companies employ a prospective customer’s credit score. In addition to the specific score potential customers register, said establishments will also carefully look at other key issues, including their payment history, the length of their positive or negative credit history and the types of credit they have been extended, such as, car loans, mortgages and charge card accounts.

Will Bad Credit Increase Premiums?

Insurance insiders maintain that a poor credit score could result in increased premiums and a good number might help reduce said charges. However, these entities stress that, while credit history is definitely factored into the company’s ultimate decision, this consideration is not weighed as heavily as institutions, like banks or credit card companies in rendering final determinations.

Improving Credit Score

A West Palm Beach car accident lawyer reminds potential clients that they might be able to improve their credit score by initiating actions, including the remittance of bills on time, keeping charge count balances as low as possible and challenging any potential inaccuracies listed on credit reports.

Contacting Us

Good credit often proves crucial to obtaining many important benefits, such as, low car insurance premiums. Fortunately, however, executing several simple actions can improve this critical factor. For questions about this topic or for those injured in a car accident, a car accident lawyer in West Palm Beach may prove beneficial.