7/20/2011 - How much money can people with good credit save on auto insurance?
Most people know that a clean driving history can save them money on their car insurance, but they may be surprised to learn how much a good credit score can save them.
According to the quote comparison website CarInsurance.com, a credit rating that's higher than 750 can save people an average of $783 per year on their annual premiums.
"That kind of money really adds up, said Des Toups, senior managing editor of the site.” If you maintained a good credit score from the time you turn 25 to the time you retire, you'd save $22,815 over the average premium for people with similar driving records."
Conversely, the study also looked into how no credit history can affect rates. For instance, the study found the average premium for drivers between 16 and 24 was $3,152. But that number skyrockets to $4,191 if no credit is on file.
In addition to lower auto insurance premiums, a good credit history may also allow drivers to finance a vehicle with a cheaper interest rate.