The 25 Point Credit Score Drop And My New Car Insurance Rate

As I mentioned in another post,  when I applied for several credit cards on the same day and received a 25 point credit score drop in the months after, I was anxious to see how it would affect my auto insurance premium.

I pay my car insurance monthly, even though they charge me a few extra dollars to do so. I know that I shouldn’t, but I do. So, my rate for the past six months has been $78.61 monthly. When I got that rate back in June, it was a decrease from the just over $80 that I was paying monthly as my credit score had increased since the previous premium change.

So, my new insurance premium goes into effect tomorrow and I got the paperwork for it the other day.

Did my monthly premium increase?

Yes!

But, not by as much as I had feared. The new monthly rate is $79.13. So that is a $0.52 monthly increase, or a $3.12 total increase for the 6-month period. It kinda makes me wonder if they were looking at an older credit score report. Either way, I’m stoked that it did not increase by a crazy large amount.

1 thought on “The 25 Point Credit Score Drop And My New Car Insurance Rate”

  1. It’s unfortunate that insurance rates are tied to credit scores, but that’s just the way it is!

    If someone is not responsible enough to pay bills on time, they may not be responsible to maintain their car properly. May not rotate tires, or change them when they are bald. Not saying that is true in every case. Not every 16 year old male is a bad driver either, but they all get charged like they are.

    I’m a perfect example. In my early 20s I was a mess. Behind on bills, behind on rent. Drove without insurance and a license for a while. Fortunately that was before credit scores. Thought I didn’t have enough for new tires, so I drove them until the steel belts were sticking out. Had the right front tire blow out while I was passing someone on the interstate at 70 mph. I managed to keep it in my lane, but I could have easily killed both of us.

    Today I have a score over 800, have a large amont of liability coverage, maintain my vehicles and am a much safer driver.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.