A low credit score can make just about everything more expensive, including insurance

By Product Expert | Posted in FAQs, Texas, Tips and Tricks on Tuesday, March 9th, 2021 at 9:12 am
A stock photo showing a $100-dollar bill and toy car sitting on an insurance form.

Can bad credit affect how much car insurance will cost? 

One of the unfortunate realities of life is that a less-than-perfect credit score can make things more difficult and expensive. This is especially true when it comes to buying a car. However, that isn’t the only area where a low credit rating can raise the cost of things. Can bad credit affect how much car insurance will cost? In the state of Texas, unfortunately, the answer is yes. According to the financial website, TheZebra.com, people on the lowest end of the credit scale can up to more than $3,700 per year in insurance premiums versus people with better credit scores. Let’s take a look at some information you might find helpful. 

READ MORE: How can I rebuild my credit? 

How can I get more affordable car insurance with low credit scores? 

Shop Around — Like anything else when dealing with the intersection of the automotive world and low credit scores, a little legwork might be required. Different insurance provides may offer different rates across the board for people depending on their circumstances. Fortunately, the internet is filled with several safe and secure ways to make shopping for car insurance as easy as possible. When in doubt, consult a licensed insurance agent for help. 

Ask About Discounts — Just because a person has a less-than-ideal credit score does that mean they can’t get discounts. Ask your current insurance provider about ways to lower your monthly premium like bundling with other policies or good-grade discounts for those who might still be in school. 

Don’t File Every Claim — Regardless of credit score, filing a claim on an insurance policy is going to raise the costs. Consider paying for minor incidents out of pocket or if your vehicle was the only one with damage after an accident, just skip filing a claim altogether.  

If you have any questions about how to save money on car insurance, reach out to an insurance agent. However, if you need help saving money on the purchase of a car, truck or SUV, make an appointment with Third Coast Auto Group today.