Car insurance and your credit score: The Real Deal

Wed, 13th Aug, 2008

Syracuse, New York (WSYR-TV) - Want a better car insurance premium? Then start working on your credit score.

It's now a big factor insurers take into consideration, and you’ve been asking us how exactly it's used to determine your rates. 

Here's The Real Deal: An insurance company can use your score when they first write your policy to set your premium. After that, they can lower your rates if you better your score - but they can’t raise them.

That means you don't want to be shopping around for new insurance if your credit score has gone down.

Everyone is entitled to a free copy of their credit report every year, but if you want to know what your credit score is, you'll have to pay for that.  Normally it costs between $10 to $15.

Source: http://www.9wsyr.com/