How does Credit Score affect Auto Insurance Rates?

At Nationwide Kathye Carpenter, we know that you are a careful, defensive driver, you follow the rules of the road and even received a “Good Driving Certificate” the last time you renewed your license. You would think that this would make you eligible for the lower car-insurance rates than your neighbor with his spotty record?  That isn’t necessarily the case.

In recent years, many companies have begun using your Credit Scores as a major factor in determining the cost of your Car Insurance coverage. Flying in the face of what might seem like common sense; the cost of a bad credit score can often be greater than having several tickets on your driving record.

We at Nationwide Kathye Carpenter Agency find the use of credit scores as a factor in rating upsetting for several reasons.

Houston Car Insurance companies are not telling you that your credit score drove up your rates, you don’t know to challenge the validity of the report. The truth is, credit reports often include errors; so you could be paying for other people’s mistakes.
At Nationwide Kathye Carpenter Agency, we disagree with the basic idea that credit history is a good predictor of who is more or less likely to have a loss. Over the past 50 years, we have found that even the best driver can have an accident, but that drivers with a good driving record, are less likely to have a loss and deserve lower car insurance rates.

We at Nationwide Kathye Carpenter, understand how hard you work for your money; that is why we work harder to find you the lowest Auto Insurance rates. Our rates can save you hundreds of dollars per year on your car insurance.


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15915 Katy Freeway
Suite 610
Houston Texas, 77094
Phone: 281-575-0300
Fax: 281-575-0999

12312 Barker Cypress
Cypress Texas 77429
Phone: 281-373-2266
Fax: 281-373-2248