Insurance Professionals Menu

Image for blog post on car insurance price

Does my credit score impact my car insurance price?


Do you want to know what affects your car insurance price? To find out, use the ValChoice car insurance calculator. The calculator uses the average price for insurance where you live, and customizes the estimate based on factors used by insurance companies. This is not a quote. However, the calculator will show you how car insurance prices are calculated. Click the button below to use the ValChoice Car Insurance Calculator.


Can my credit score reduce my car insurance price?

Whether your credit score can reduce your car insurance price depends on two things: 1) where you live, and 2) how good is your credit score. Let’s start with where you live.

If you live in any of the following states, your credit score will not impact your car insurance price:

  • California
  • Hawaii
  • Massachusetts
  • Montana
  • North Carolina
  • Pennsylvania
  • Washington – unclear of this is a permanent status

Not using credit score for calculating insurance rates was instituted on a temporary basis on Washington. While temporary, taking the step to test out this regulation on a trial basis probably indicates an inclination to make it permanent.

How does credit score impact car insurance price?

A high credit score results in a lower car insurance price. However, a low credit score results in a higher car insurance price. Many people ask how can a credit score relate to insurance rates? Here’s how:

  • Industry data shows drivers with lower credit scores file more insurance claims. Therefore, the cost to insure these drivers is higher. Hence, allowing the use of credit scores in rating insurance addresses this increased risk. This is logical since the probability is that drivers with lower credit scores have less access to cash. Therefore, if their car is damaged, relying on insurance for repairs is necessary.
  • Conversely, drivers with higher credit scores file fewer insurance claims. The reasoning stated above applies, in reverse.

How do I find the best car insurance and home insurance?

The ValChoice mission is to help consumers find the best insurance and to get a good value. Therefore, we make it easy to find the best insurance companies. Simply click the buttons below, then choose your state. We list the best insurance companies, graded on value, quality and service in each state.


What if I want to find an insurance agent that offers great insurance?

Do you prefer to not sort through which insurance companies are best? If so, finding agents that represent the best companies is a better option for you. Therefore, ValChoice offers a service listing agents that represent the best companies. Click the button below to find insurance agents in your area that offer you excellent insurance.


Note: ValChoice rates all auto and home insurance companies on a state-by-state basis. We use the highest quality data. Importantly, the data is collected and vetted through sources such as state departments of insurance, National Association of Insurance Commissioners, AM Best and others. Importantly, we don’t use any data from online reviews or user surveys. Hence, ValChoice ratings are more accurate than any other insurance rating system.

No comments yet.

Leave a Reply