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Cheaper car insurance can depend on credit scores

Monday - 7/4/2011, 6:48pm  ET

WASHINGTON - It turns out a good credit score can get you a break on car insurance.

Insurers check credit ratings because they have found a correlation between credit scores and the likelihood a driver will file a claim.

Apparently, the higher the score, the less likely a driver is to file a claim.

A new study by found drivers with credit scores of more than 750 save an average of $783 a year, compared with a typical driver in the same age bracket.

The study compared the lowest rates offered for tens of thousands of single driver policies, when the driver reports no violations or accidents.

Adults between the ages of 25 and 34 with clean driving records and full coverage pay an average of $1,938 a year. Those with a credit score of more than 750 save 40 percent.

WTOP's Bob Kur contributed to this report. Follow WTOP on Twitter.

(Copyright 2011 by WTOP. All Rights Reserved.)