Credit Checks and CO Auto Insurance

Why should your credit rating make a difference to your CO auto insurance rates? Unknown to many motorists, auto insurance companies run through a selected criteria every time a new policy is applied for. As well as assessing your driving record, accident claims history and the model of vehicle you drive, carriers also look carefully at your payment histories.

As with any other form of risk that a CO auto insurance company underwrites, an assurance of payment is also vitally important to a smooth and profitable business operation. Your carrier will look at your payment history on other polices and also apply for data relating to outstanding and settled credit obligations such as mortgages and major retail purchases.

If you have a record for making timely payments, your CO auto insurance carrier will not penalize you with higher rates. Indeed, those who pass through credit checks easily often find themselves enjoying additional discounts. If you have a bad credit history, there are still a number of measures that can be taken to bring down the cost of auto insurance quotes:

  • Apply for a copy of your credit record and check through all of the information contained within it to ensure everything is correct
  • Contact companies that you still owe money to, especially if you are still missing payments. Ask if your current loan agreement can be restructured so smaller payments can be made over a longer period of time
  • Make a concerted effort to stick to any agreements you have made. As time goes on, your credit score will increase and your auto insurance rates will come down