Table of contents:
Car Insurance Bad Grades – You know that accidents affect your car insurance. But did you know that your credit can affect your car insurance? Auto insurance companies will take your credit into account when calculating your rates in 46 states, including Maryland. At MAIF, the Maryland Automobile Insurance Fund, we want Maryland drivers to be covered. If you currently have bad credit and are curious about your auto insurance options, read on.
Credit scores can range from 300 to 850 and are often an indication of how quickly you pay off your debt. This FICO or credit score looks at your payment history, amount owed, length of credit history, new credit, and combination of credit types to create a credit score. Your credit score can affect your ability to rent or buy a home, get a loan, and even get affordable car insurance.
Car Insurance Bad Grades
Auto insurance companies take credit scores into account because drivers with higher credit scores are more likely to file insurance claims. This means that insurance costs for these drivers will be more expensive. If you have bad credit, you will see an increase in your auto insurance premiums. While you’ll still be covered, you could end up paying hundreds of dollars more if you have a poor credit score.
Car Insurance For Bad Drivers
In the state of Maryland, if you have bad credit and get into an accident, you could see your auto insurance premium increase by 72%, or an average of $1,149. This increase can make car insurance unaffordable.
So what can you do to lower your car insurance rates if you have bad credit? Increase your credit score.
Depending on the reason for your low score, it may take some time to see your credit improve. Focus on the reasons to score to improve your score. Common reasons many people have low credit scores include debt or missed payments. Paying down debt and paying off your credit cards on time can boost your score.
Once you’ve built your credit score, you can compare auto insurance quotes. It is important to be covered by auto insurance because you could end up paying more if you are uninsured and have an accident.
How To Change Car Insurance: Everything You Need To Know
At MAIF Insurance, we’re here to help drivers who can’t afford but need auto insurance. Call 301.476.4887 or get a free auto insurance quote on our website. If you have questions about your credit and insurance, don’t hesitate to ask our team. We’re here to help you find the best plan for your budget.
From Our Blog Why You Should Buy Maryland Travel Insurance Navigating Auto Insurance When Moving to Maryland Do You Meet Maryland’s Minimum Insurance Requirements?
