Does a Bad Credit Score Make You a Bad Driver?

It's pretty common knowledge that bad credit scores can make life difficult. Try getting a credit card or loan with a bad credit score. If you manage to get approved, you'll probably have an interest rate so high your minimum payments may not even cover the finance charges.

You'll pay another high price for a bad credit score - a higher insurance rate. Until they get an unexpected rate increase, not many people realize insurance companies check credit scores. They argue that people with lower scores tend to file more claims and are therefore more expensive for the company. These companies haven't shown us the statistics to back up this claim, so we'll just have to take their word for it - for now.

What do you think? Does a low credit score mean you're a bad driver and deserve a higher insurance rate? Should insurance companies use credit scores to set premiums?

Take a look at Bad Credit, Bad Driver to learn more about how insurance companies use credit scores.