Your credit score affects your car insurance by determining if you're a risk of filing a claim.
Lower credit scores usually lead to higher car insurance premiums than high credit scores, because insurance companies use a credit based insurance score to predict your risk as a policyholder of filing a claim.
Studies also have found that there's a correlation between lower credit based insurance scores and a higher likelihood of filing an insurance claim, so as a result, drivers that have poor credit or lower credit scores often will pay significantly more for their or car insurance coverage.
Although the exact impact of your credit score on your car insurance or auto insurance premiums can vary by state, but a higher credit score can also result in some substantial savings on your auto insurance premiums.
Most major car insurance companies, use a credit based insurance score, as one of their many factors in determining your auto insurance premiums.
People with higher credit scores are often seen as being lower risk than people with lower credit scores and may pay less for their car insurance.
And people with lower credit scores may pay more for their car insurance.
Your driving history, location and type and value of car also affect your car insurance rates.
Although even with a low credit score, you might be able to find cheap car insurance still.
Most insurance companies also have a grace period, which is usually 10 days to 30 days, during which you can pay the car insurance bill and avoid a lapse in auto insurance coverage if you miss a payment.
However by law, you must legally have auto insurance or car insurance in all states, except for New Hampshire.
Driving without auto insurance or car insurance can result in fines, towing and impounding of your vehicle, drivers license suspension and other severe penalties.
And having an auto insurance policy lapse can also increase your future auto insurance costs.
The US started requiring car insurance in 1925, which is when Massachusetts first mandated car insurance.
Then Connecticut passed an early law that same year for car insurance to be mandatory.
Then in the following decades, auto insurance or car insurance became mandated in other states and by the 1970's most states had laws in place that required drivers to carry a minimum amount of liability auto insurance.
And today, all states in the United States, except for New Hampshire require mandatory car insurance, although drivers in New Hampshire can legally opt out of auto insurance and instead show financial responsibility.
Car insurance or auto insurance is legally required, in every U.S. state, except for the state of New Hampshire.
Most states other than New Hampshire, require you to have liability auto insurance.
Although the minimum auto insurance coverage amounts and types, like bodily injury and property damage, also vary by each state.
And although New Hampshire does not legally require auto insurance or car insurance, New Hampshire does require drivers to be able to prove that they have sufficient funds or money to cover any potential accident costs instead of having to carry auto insurance or car insurance.
If you area leasing or buying car or other vehicle and you're still paying for it, then the lender will require you to have full coverage auto insurance on your vehicle, while you pay off the vehicle.
If you own the vehicle outright, then you don't require full coverage auto insurance, unless you want to have full coverage auto insurance.
When you register or renew your vehicles registration, you also are required to show proof of valid auto insurance for the state you're registering the vehicle in.
If you drive without auto insurance and get into a wreck, you can get into lots of trouble and can also be sued by the person that you ran into or caused damage to their property.
Then you would have to pay for all that out of pocket.
And if you get pulled over without valid auto insurance or valid car insurance, then your vehicle will be towed, until you get auto insurance and pay the towing and storage fees.
Also make sure you have your car insurance or auto insurance cards with you at all times and make sure they are not expired.
Driving without an auto insurance card or an expired auto insurance card, can get you a fine, which can vary from state to state, but in some cases, the fine for driving without an insurance card or expired insurance card is around $100.00 to $150.00 but it can also be higher.