Why Does Bad Credit Affect Car Insurance? 
That is an excellent question ! There are a couple of reasons why auto insurers look at your credit score -LRB- and other insurers , btw ... -RRB- and payment histories . The first should be pretty obvious - they want to make sure that they will get paid , so the more likely you are to make on time full payments , the less risk to them . On the other hand , if the risk of not getting payments on time , or receiving partial payments will cost you more in a higher premium . The second reason is a little more subtle . The assumption is that having poor control of your finances is an indicator of the possibility of not being in control of other areas of your life . If you take risks with your money , maybe you take risks with your car , or your health , etc. . If you are prone to taking those sort of risks , then the companies risk also increases , as will your premiums . If you have issues with your credit , be sure to explain them to the agent , many will find a way to work with you . I hope that helps , thank you for asking ! 