Do insurance companies check your credit score?

Insurance companies do not use a standard credit score in the way a bank does. They use a credit-based insurance score (CBIS) using these factors:

• Payment history
• Outstanding debt
• Length of credit history
• Types of credit accounts

CBIS does not use the following factors; however, insurance companies may still consider them separately from the CBIS when setting rates.

• Income
• Employment history
• Age
• Gender

How does your credit score impact insurance premiums?

• If you have a higher credit score, insurance companies see you as less risky, resulting in lower premiums. Conversely, a lower credit score can result in higher premiums.

What additional factors affect your insurance premiums?

• Driving record and claim history
• Age
• Gender
• Marital status
• Car type
• Mileage you drive each year
• Location: city vs suburb vs rural
• Coverage level and deductibles

How can you improve your credit score and lower your premiums?

• Pay your bills on time.
• Reduce debt, for example, debt on credit cards.  
• Do not apply for credit accounts frequently, as it can trigger a credit check and potentially lower your credit score.

In summary, your credit score is one factor that can impact your car insurance premiums, but there are other factors, as well as discounts, that can help. Even if you need to rebuild your credit, there are plenty of ways to lower premiums.