Does credit score affect price of AAA car insurance?

[foeplay]

I know I've read that some people have got their car insurance rates lowered when their scores increased so I wanted to check if AAA works this way as well before I waste my time on hold with them. I was never hard pull for a membership, so I assumed it was based on driving record. I went to their list of discounts on their website and didn't see anything for good credit score discount. Thanks for the help.

 

I also just noticed a $13 finance charge on my 2nd bill for paying my insurance in installments which I was never told about or I would have just PIF'd it when I signed up.

[foeplay]

Wow I just called to find out wth this finance charge is and to try and get it removed and they said the rate is 18% of the balance left, I am so pissed off. I hate paying stupid financing fees for nothing ughhhhhhhhhhhhh

[jason86423]

I have AAA for both my house and car and yes your rate is influenced by your score. aaa will update your score risk automatically once every three years but you can request an update once every 12 months. when my credit improved I cut my house premium by 35% and my car premium by 25%. Here is the kicker. If your score is lower than your last update your premium may rise and you are stuck for 12 Months unless you change carriers. Aaa will also use the highest insurance score that is on the policy so if your spouse or child has a higher score you can use that on the auto policy.

 

I'm in Michigan so other states may be different but this was my experience last summer.

 

I also pay monthly on auto pay and dont get charged a finance charge.

 

 

Wow I just called to find out wth this finance charge is and to try and get it removed and they said the rate is 18% of the balance left, I am so pissed off. I hate paying stupid financing fees for nothing ughhhhhhhhhhhhh

 

 

 

[mmm]

I have State Farm for our home and cars and yes our rate was dependent on our credit score. I will be switching over to USAA soon and I think they do the some thing.

 

I pay State Farm monthly but they don't charge any interest, just the monthly fee.

Edited January 4, 2012 by mmm

[foeplay]

Thanks guys.

 

I just called and ask about credit score and they said they don't use my credit score in determining the rate of my insurance. Could this be on a state by state or area by area basis? Should I have requested a score risk update?

[Meh]

Almost all insurance companies will use information on your credit report to determine rates. Not necessarily your "credit score" because they do pull a soft pull, but any negative information could cause them to charge you a bit more. You can have poor credit and still have decent rates. Insurance companies tend to adopt the fact that your credit score is indicative of the type of risk you'd be.

[cputrwz]

Yes, whether or not car insurance companies use credit as a factor in your rate is determined by state. Each state has its own rules.

[jcshadow5]

Not all insurance company use credit ratings, but its becoming pretty common these days. My insurance company calls it something like a credit tier rating. With range of 1-5 1 being best and 5 worst. I went from 2 to 1 and was quite surprised at the savings.

 

Also watch out for extra fees added on mine was set up on auto draft and I never payed attention to statement. Gave it look one day and found they had been charging a 3.00 processing fee for each draft. With five different draft dates it was costing me extra 15 month. Switched to every 6 months and was able to stop the processing fee plus knock few extra dollars for paying every 6 months.

[cocomad]

Not all insurance company use credit ratings, but its becoming pretty common these days. My insurance company calls it something like a credit tier rating. With range of 1-5 1 being best and 5 worst. I went from 2 to 1 and was quite surprised at the savings.

 

Also watch out for extra fees added on mine was set up on auto draft and I never payed attention to statement. Gave it look one day and found they had been charging a 3.00 processing fee for each draft. With five different draft dates it was costing me extra 15 month. Switched to every 6 months and was able to stop the processing fee plus knock few extra dollars for paying every 6 months.

I woke up one day and checked out Librty Mutual online and quickly switched from progressive to them. We always had good scores but with progressive I feel we were paying for Flo ads. I cut our insurance in half with Liberty Mutual, with the same products and about the same FICO's. Shop around online.

[foeplay]

States That Use Your Your Credit Score

Today, there are 46 states in which auto insurance companies can look at your credit score and consider it a factor in your premiums. California, Massachusetts, Hawaii and Maryland forbid this practice, but it's open everywhere else.

Woot, Cali comes through again, FTW!!!

 

 

It wasn't until this forum and FWF that I cared about bogus fees and APRs. I want to maximize my cash back rewards!!!

Edited January 4, 2012 by foeplay

[sjca]

Thanks guys.

 

I just called and ask about credit score and they said they don't use my credit score in determining the rate of my insurance. Could this be on a state by state or area by area basis? Should I have requested a score risk update?

Some States do not allow the use of credit score in determining insurance rates. I am in California where it is illegal for an insurance company to use credit in setting rates. What State are you in?