Is there an auto insurance payment to improve your credit score?
Insurance companies often use the driver’s credit score to determine the ability to claim insurance. Although your credit score may affect your auto insurance rates, the payment it doesn’t help improve your credit score. Automobile insurance companies do not regularly report to the credit office each month, which means that your credit records will not reflect the positive account history.
Automobile and credit Insurance
For an account to increase your credit score, creditors must report the payment history to the credit office. Credit cards, loans, and mortgage appear on your credit report. Utility companies, car hire, and insurance do not report payments to offices. Although these companies do not report your active account history, your credit score will be affected if the account becomes past due. Insurance companies will cancel your policy after payment is missed, but unpaid balances are often sent to collections. Not only is your credit score affected, but delays in coverage will increase your rate in the future.