WHAT DOES YOUR CREDIT PAYING HISTORY GOT TO DO WITH PAYING HIGHER/LOWER CAR INSURANCE RATES?

Well, the real answer is, people with credit scores under 600 have more claims, and higher amounts paid out, than people with scores over 700. It’s a direct corrolation – the lower the score, the more often, and the more severe, the payout.

What you’re probably really asking is WHY do people with lower scores have higher/more frequent claims. And the answer to that is, no one really knows, because no one has researched it. It doesn’t MATTER. All that matters is, the relationship between score and claims is real, and substantiated.

Just like, WHY do 16 year old boys have more accidents? No one knows for sure, and it really doesn’t MATTER. They just do. So they pay higher rates, too.