Does paying car insurance monthly affect credit score?

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asked Jan 22, 2019 in Insurance/Registration by lukidawghause (240 points)
Does paying car insurance monthly affect credit score?

1 Answer

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answered Jan 23, 2019 by lindsabolduc (280 points)
Auto Insurance is not a debt as in a loan so no paying your car insurance payments monthly will not increase your credit score so it doesn't matter whether you pay your car insurance monthly or pay it once per year or every 6 months depending on what your auto insurance company allows you to do.

I personally just pay my auto insurance in one lump sum every year because I save around $200.00 per year paying the auto insurance yearly instead of monthly.

Your auto insurance payments have no affect on your credit score but your credit score does have an affect on what you pay for auto insurance and having a high credit score and great credit history can help to lower your auto insurance costs because it shows you're a good risk to them.

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