But a good credit score may prompt an insurance agent for a credit-based plan to offer you a lower rate than a competitor.

Do you need a credit score for car insurance. Studies show that using this score helps us better predict insurance losses. Your car insurance company can easily get access to your credit score. According to Experian data from late 2020 youll need a credit score of 781 to be eligible for the lowest interest rate on a car loan.

A credit score between 630 and 650 is generally what lenders want to see. The straight answer is no we do not need a credit score to get car insurance. This means that car insurance companies will need your credit score.

Nationwide uses a credit-based insurance score when determining premiums. Credit scores may affect car insurance. Studies show that a credit score is directly related to how frequent and severe insurance claims are filed.

The reason they are using your credit score is because the historical data shows a direct connection between good credit and being a good risk versus having poor credit and being a poor insurance risk. People with scores in the 700s can expect to save money on their premiums. Your credit score doesnt need to be a perfect 850 to get approved for auto insurance.

While its only one of many factors that go into determining your rate having good credit can help you save money. However once you have credit it can increase or decrease your car insurance. If you have a good credit score you may be able to negotiate lower interest rates.

If youre shopping around for car insurance its a good idea to get quotes from credit- and non-credit-based insurance plans. With this there is some leeway around your credit score requirements when looking to obtain a car loan. Thus the higher your credit score is the less likely you are to be in an accident and file a claim or so goes the theory.