There are so many different factors that go into building an insurance premium that most consumers easily accept the fact that they don't know much about the financial algorithm. Even still, most people wouldn't dream of putting the words, "auto insurance credit score" in the same sentence together, but that does not mean they shouldn't. Since car insurance isn't purchased with credit cards or loans, many people assume that their credit rating or FICO score has no bearing. Unfortunately, these people are behind the times and sadly misinformed.

Your credit score is a representation of the risk you pose to creditors. It indicates possible payment problems that creditors or lenders should expect from you as well as your likelihood to default. Unfortunately, the very same tendencies that make you a poor financial risk may also indicate that you are a poor insurance risk and may render you uninsurable.

Your general attitude toward your obligations, as indicated in your credit rating, could force the insurance company to see you as high-risk and may result in higher auto insurance premiums. If you are looking for comprehensive auto insurance with a budget price tag, pull a copy of your credit report first and see if you can't raise your FICO score.