Absolutely it does, sometimes significantly. This is because there is a correlation between driver's credit scores and their likelihood of being involved in a claim. While using credit scores for insurance underwriting is controversial, it is currently a widespread practice in most jurisdictions.

The credit score shows car insurance companies how responsible you are. According to research, there's an indirect correlation between credit score and your likelihood of making a claim. The lower your credit score, the higher your chances of making a claim. It also shows them that there's a chance that you won't pay your monthly premium. I hope this helps!

Christopher Phillips
http://www.autoquotenow.com

If you are responsible with your money, then you are responsible for your driving habits. Its not an excuse to charge more for premiums, its meant to reduce the cost to good drivers and charge people who are risky more. If you can eliminate the risky ones, then you can charge everyone less. For example, Amica has eliminated risky drivers. My premium at 22 50/100/50 coverage is 900$ a year, or 450 a month. If I wanted that through progressive, it would cost me 700 every 6 months. The difference offsets the loss from the risky drivers who constantly crash their car or total it. Without them, the premiums bottom out.

While the principle behind linking credit score to insurance risk is worth - it is a risky tool in hands of insurance companies that would use it for their benefit.
My credit score is higher than 800 - but when I renewed with Allstate, my policy document stated that my credit score has affected the rate that I got because I don't have long credit history. I have 10 years of credit history. I have good driving record - so insurance company had to find some way to increase my premium, they got the excuse from my credit report.

Credit Scoring for Auto Insurance

You can’t turn on a TV or radio, read a newspaper, or click your way through the internet,; without being bombarded of stories of banks and finance companies being far less quick to loan money. After years where it seemed banks would give a large home loan to anyone with a pulse; those same institutions are under enormous pressure to limit loans to anyone preseved as being a higher–risk.

As lenders increase the selectivness of who meets their new standards, a higher credit score has become a necessity in obtainilng credit period. What fewer people realize is the dramtic impact that your credit score can have on your Auto insurance rates.

“Credit impacts every element of your life,” says Adam Levin, co-founder and chairman of Credit.com, a consumer advocacy website. “The stronger your credit, the easier it is to get the things you want.”

Whenever you’re applying for health, life, or auto insurance, many companies will pull your credit report when you apply for insurance. Progressive, Geico, State Farm and Allstate all run your credit report prior to starting your coverage, and each of them state that they have studies that have linked poor credit with higher claims and or a greater frequency of insurance claims. Insurance companies not wanting to lose money ; yet opporationg in a very competitive markiet place utalize credit scores as a means of selection. — if you’re score is deemed not a safe bet for them, they’ll surscarge your rates. The surcharge connected to a low credit score can be larger than the charge for Drunk driving.

While most drivers intuitively understand, and expect, that speeding tickets, driving under the influence of drugs and alcohol; or a pattern car accidents will increase their auto insurance premiums. However I think the lion’s share of Americans would be surprised to find that a poor credit report can dramatically increase the premiums they pay for automobile insurance.

In other words, one’s credit history, can often have a greater impact on one’s rates than one’s one’s driving history,

http://urbaninsuranceagency.com/insurance-articles/326/credit-scoring-for-auto-insurance.html

Larry Lubell
www.UrbanInsuranceAgency.com