How your Credit Score Affect your Insurance Rates

If your car insurance policy is coming up for renewal, you may want to check your credit report. Why, you may ask? More and more automobile insurance companies are checking credit reports today to provide a risk assessment on potential clients. The car insurance companies are beginning to believe more and more that a person’s credit score is a fairly accurate predictor of risk taking behavior. The theory is that a person who has a low credit score will also have a greater propensity to engage in risky driving behaviors. On the other hand, a person with a higher credit score has more of a tendency to be conscientious of others and will therefore have less risky driving behaviors.