A number of factors are used to calculate your auto insurance premium. These include where you live, your age, your claims history and your occupation. Your credit score also helps establish the cost of your premium.
Read more about why your credit score is used to determine your personal risk and how credit-bolstering measures can help you secure a cost-effective premium.
How Your Credit Score Affects Your Premium
Research indicates that if you are responsible with your finances, you will likely also be responsible when driving your vehicle, taking care of your home and managing your health. 
Besides loss reports and other personal information gathered on your insurance application, your credit score is used to determine how likely it is that you may experience a loss. A higher credit score indicates a lower risk, which translates to a decreased rate. Whereas, a lower credit score indicates a higher risk, which leads to an increased rate, according to statistics.
How to Bolster Your Credit Score
Help improve your credit score with these tips:
- Keep low credit card balances.
- Apply only for needed credit cards.
- Do not close unused credit cards as a means of raising your credit score.
- Do not open new accounts to increase your available credit.
How to Review Your Credit Score
Contact a trusted organization to obtain an accurate copy of your credit score. Organizations for this information include Experian, Equifax or TransUnion.