Finding affordable auto insurance is hard enough with good credit, but if you have bad credit, it may be even harder. In Georgia, you may pay up to 131% more for auto insurance if you have poor credit as opposed to exceptional.
Even if your credit score is poor, you can still find insurance. Your rates are typically going to be higher than usual, however.
There are many sites available where you can plug in your information and check your credit score for free. Typically, 300-579 is considered very poor while exceptional credit is between 800-850. If you find yourself on the lower end, you may have trouble finding an insurance company that will sign you on to a policy. Things that influence your credit include unpaid bills or fines and your credit history. If you’re a new driver and haven’t built up credit yet, you don’t necessarily have bad credit. You simply have no credit and need to work to build it up. If you’re a new driver with no credit, your insurance rates will most likely be high as well. Check your credit score and discuss its affects on your policy with your insurance agent.
Usually your driving record won’t show up on your credit score or vice versa. A time where these may overlap is when you fail to pay a traffic fine and that fine is sent to collections. Things that show up on your driving record—which may also affect the cost of your auto insurance—include:
When reviewing drivers to offer a policy, insurance companies look for an understanding of how much risk the driver is. High-risk drivers are drivers that pose a huge risk due to a history of several tickets, traffic violations, etc. Credit scores can show the insurance company how responsible or reliable you are. If they notice that you often pay bills late or have wracked up a lot of debt, the insurance company may charge you more to cover their possible losses.
Understanding your credit score and driving record is just the beginning of finding auto insurance. Talk with a Peachstate Insurance agent today and find the right coverage at the right price, right down the street.
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