What’s a good credit discount? How do I get it?
Auto insurance companies don't offer good credit discounts, but you do get cheaper insurance with good credit. This is because a good credit score shows your insurance provider that you are financially responsible and less likely to file a claim. You'll typically need a credit score of 690 or higher to qualify for a good credit discount.
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UPDATED: Jul 16, 2021
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- Instead of a discount, people with good credit generally receive lower rates than those with poor credit
- A good credit score shows your insurance provider that you are less likely to file a claim
- Those with very good credit scores can expect to pay $1,500 less per year for auto insurance than those with poor credit
If you’re looking for instant auto insurance quotes online, your quotes will be impacted by factors such as your driving record, location, and credit score. But did you know those with good credit can get a good credit auto insurance discount?
Combined with other discounts, good credit discounts can help cut your auto insurance rate down to a more affordable price. Not only does good credit help you in securing loans, but it also helps you save money on insurance.
Keep reading below to learn what a good credit discount is, how to get it, and how much you can save. First, enter your ZIP code into our free comparison tool above to find affordable auto insurance near you.
What is a good credit auto insurance discount?
Strictly speaking, a good credit car insurance discount isn’t a discount per se. Instead, of a discount being applied to your rate, people with good credit typically receive lower rates overall.
Does a good credit score help car insurance? Yes; by simply having a good credit score, auto insurance companies will usually offer you lower rates than those with poor credit scores.
The reason for this is that your credit score reflects how reliable you are in paying back your debts. Since auto insurance rates are determined by risk factors, having a higher credit score shows that you are less risky to insure and less likely to file a claim.
So while you may not receive a traditional good credit car insurance discount, you will still pay lower rates overall. However, not all companies lower rates for good credit, so compare auto insurance quotes from multiple companies to find the best deal.
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How do I get a good credit auto insurance discount?
So how do you get a good credit car insurance discount? Well, most of the best auto insurance companies require you to have a credit score of at least 690 or above to qualify for a discounted rate.
However, each auto insurance company is different, and it’s important to do your research before you buy. The Insurance Information Institute recommends you compare auto insurance rates from at least three different companies to find the best deal.
You’ll also want to get your credit score higher to ensure you qualify. Paying back any debts or loans in a timely fashion is the best way to raise your credit score.
How much can I save on auto insurance with good credit?
Do you get cheaper insurance with good credit? Yes, and the higher your credit score, the higher your savings will be.
Those with very good credit scores (740 and above) can expect to save as much as $1,500 compared to those with poor credit scores (300 to 579).
So while you may not receive an actual good credit discount, as long as you improve your credit score, you’ll be more likely to receive lower rates. Combined with other discounts, this can lead to huge savings.
Now that you know all about good credit auto insurance discounts, start shopping today. Enter your ZIP code into our free comparison tool below to buy auto insurance from providers in your area.