Cheap Car Insurance May Depend on Credit Score

For some drivers, it turns out their credit score could be something that ends up keeping them from getting cheap car insurance. For some drivers, it turns out their credit score could be something that ends up keeping them from getting cheap car insurance.

According to a report on ABC15.com in Arizona, many insurers will check a customer's credit score before setting a rate for them. The report quoted veteran insurance agent Richard Usher as calling the practice "not new" and "relatively common," even though he added that he himself does not make a regular habit of doing so with customers.

The practice is said to involve a "tier system" that affects how much a customer will pay, according to the website. Checking customers' credit scores has generated controversy in some states, while the industry generally cites statistics claiming that those with better credit scores tend to be lower financial risks when it comes to the size and frequency of the claims they file.

The current recession has had a damaging effect on many consumers and their credit scores. However, those who take the time to shop around for cheap car insurance online will often find a policy that suits their budget, regardless of their credit background.