Understanding the Impact of Credit Scores on Non-Standard Auto Insurance Rates in Illinois

When it comes to securing auto insurance in Illinois, your credit score can play a significant role, especially if you’re seeking coverage through non-standard insurance providers. Non-standard auto insurance is designed for individuals who may have difficulty obtaining coverage through traditional insurers due to factors such as poor driving records, at-fault accidents, driving without insurance or lapses in coverage.

What Are Credit-Based Insurance Scores? 

In Illinois, as in many other states, insurers use credit-based insurance scores as one of several factors in determining auto insurance premiums. A credit-based insurance score uses information in your credit report to help assess the likelihood of you filing a claim. Some insurers consider individuals with lower credit scores more likely to file claims and may charge them higher premiums.

Impact of Credit Scores on Non-Standard Insurance Rates

For drivers seeking coverage through non-standard auto insurance providers in Illinois, credit scores can significantly impact premium rates. Individuals with lower credit scores may face higher premiums than those with higher scores, even with similar driving histories.

Factors Influencing Credit-Based Insurance Scores

Several factors can influence your credit-based insurance score, including your payment history, outstanding debt, length of credit history and new credit accounts.

Some parts of your financial life weigh more heavily than others when it comes to insurance-based credit scores. For example, paying your credit card bills and loans on time each month has more of an impact on your scores than your mix of credit types or how many times you apply for new credit in a short amount of time.

If you’re concerned about the impact of your credit score on auto insurance rates, you can take steps to improve it over time. This includes reviewing your credit report regularly, addressing any errors or inaccuracies, paying bills on time and reducing outstanding debt on revolving charge accounts.

Contact Us

Navigating the complexities of non-standard auto insurance and credit-based insurance scores can be challenging, especially for individuals with limited insurance experience. Seeking assistance from insurance professionals, such as experienced agents or brokers, can provide valuable guidance and support in finding the right coverage options at the best possible rates.

Contact Universal Insurance Services in Chicago, Illinois, to learn more about how your insurance-based credit score may affect your car insurance rates and get a personalized auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.