Will my credit history affect the cost of my car insurance?
The cost of your car insurance is based on a number of things including:
- your address
- your job
- your age
- how long you’ve been driving and your driving history
- the make and model of your vehicle
- your annual mileage
- any named drivers
- the amount of voluntary excess you want to pay
- any no claims discount you may have
But if you have a poor credit history, you may pay more for a monthly premium. That’s because, statistically, people with low credit ratings are more likely to make car insurance claims.
Paying monthly is also usually more expensive than paying for your car insurance in one go, as providers typically charge interest on the monthly instalments.
If you want to pay monthly, it may be worth checking your credit report to make sure it’s correct. You can do this for free via the credit reference agencies. See our guide to free credit checks.
For more information on the factors that affect the cost of your car insurance, read our car insurance premium guide.