There are many reasons you may want to switch your car insurance coverage. Maybe you're paying too much, you're moving, or you have too much coverage (or not enough). But how does changing coverage affect your credit?
Thankfully, getting car insurance quotes or switching providers typically doesn't affect your credit. This is in part because the credit score that car insurance companies look at is not your actual credit score.
Essentially, insurance companies take your credit information into a credit-based insurance score that directly relates to auto insurance claims. Thus, claims on your renters insurance, for example, may not affect your auto insurance.
Can You Switch Car Insurance Any Time?
In general, you can switch car insurance coverage or providers at any time. There are exceptions, of course. Let’s say you don't have uninsured motorist coverage, but another driver crashes into your vehicle and totals it. The driver doesn't have car insurance. And thus, they have no way to compensate you for the damages. In this case, even if you add uninsured coverage, this coverage won't apply to the current claim on your vehicle. It will only affect claims that come after the change.
Also be careful not to switch providers too often. If you jump from carrier to carrier, insurance providers may see that as a red flag. Some will charge you more and others can even deny you coverage because they suspect fraud.
What To Look For When Switching Car Insurance
Your car insurance rate is influenced by many factors other than your credit score. This includes your:
- Driving record
Agencies do insure drivers with poor credit. But keep in mind that insurers will often charge more in other areas in order to compensate for the risk of insuring you in this situation.
Keep in mind that a poor driving record often has more of an effect on your car insurance premiums than having bad credit. Your driving record is a direct view on how you drive, and drivers with multiple violations may find it hard to get affordable coverage. When working with your Scriber Insurance agent, look for trustworthy insurance providers that offer some type of accident forgiveness and various discounts.
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