As you may know, many factors come into play when deciding how much you pay for auto insurance. But does your credit history impact your auto insurance rates in Texas? In this post, we discuss this and other useful facts about auto insurance in the Lone Star State.
Does Your Credit History Impact Your Auto Insurance Rates in Texas?
Insurance companies use tons of information to decide how much you pay for insurance.
For example, insurance companies know things like what cars are stolen more often, or what models cause the most damage when they are involved in an accident.
But carriers also use information about you to determine your insurance rates. This includes things like your driving record, your history of claims, the place where you live, and in some cases also your credit score.
The reason is that research in the early 2000s showed that there’s a “strong association between credit score and insured losses.” In other words, people with a good credit history tend to get into fewer accidents.
The Situation in Texas
Some states have limited or even banned the practice of using your credit history as a factor to determine your car insurance rates. The list includes only eight states: California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, Utah, and Washington.
So the short answer to our question is yes, your credit score does impact your auto insurance rates in Texas.
However, there are limits to what insurance companies can do based on your credit score. For example, an insurance company can’t charge you more or deny insurance if your credit score was affected by any of the following events:
- A major illness or injury
- The death of a spouse or child
- Temporary job loss
- A recent divorce
- Identity theft
To learn more about auto insurance in Texas, contact the experts at BZ Bee Insurance Services. Our team stands ready to offer assistance and answer all your questions.
Need Auto Insurance in Houston, Texas? Contact BZ Bee!
If what you need is affordable auto insurance, look no further than BZ Bee Insurance.
We are located in Houston, Texas, and serve clients all over the Lone Star state. To get a free quote, just contact us by email (ayalamariaeugenia@yahoo.com) or telephone (832-729-8114), or fill out the contact form on this website.
