Updated - Credit score impact on auto insurance:
Bottom Line: Consumer Reports just wrapped up their latest research on insurance costs and produced a couple of telling statistics regarding auto insurance costs. The disparity for those with poor credit (rather than excellent) has never been wider. The data surrounding credit scores has continued to prove to be highly predictive for the insurance industry even if it isn't politically correct. Here's the latest:
- The cost of auto insurance for a two car household with poor credit is $2,090 more than those with excellent credit
- Bundling insurance polices is generally a good idea with average savings of $235 annually
And this is just the outcome with auto insurance...It shows the importance of being intentional regarding the need to rebuild one's credit score once it's impaired. Sometimes we make mistakes, sometimes life happens and we have little control over negative financial events. The question is what we do from that point forward. Rebuilding one's credit is most of the most worthwhile efforts you can engage. It can save thousands of dollars per year aside from improved access and better terms going forward.