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Do Auto Insurance Companies Check Your Credit Score

auto insurance check credit score

When people shop online for auto insurance quotes in California, there are many questions that come up during this process. Many people want to know if auto insurance companies check your credit score in California, and how does your credit score affect your auto insurance?

California is one of the few states that prohibit insurers from using credit scores to set prices.

Why do auto insurance providers check your credit?

This was setup for auto insurance companies to check your credit score when giving you a quote for a car insurance policy, similarly to the way other businesses may use your credit score to determine if you qualify or determine your payments. Typically, they are wanting to make sure you are able to make the necessary payments and keep up with the bill itself. While the credit score may not always be completely accurate for your situation, and there are unique situations that come up, most car insurance companies in other states will require this to get you an accurate quote. The argument in other states was that car insurance providers may associate your credit score with risk.

When shopping for auto insurance, it is good to know what kinds of things car insurance companies need to know about you to get you an accurate quote and help you get the best rate. It is a good idea to have all of your information handy so you can get a fast quote. While California does not allow auto insurers to use the credit score to set the price, your price can vary on many different factors and depending on the type of coverage you will need. If you have concerns about your current auto insurance situations and your payments, you can contact our auto insurance experts to discuss your rate and your coverage in more detail to make sure you are on the right track. Call our Long Beach or Los Angeles offices at 877-945-7233.