One of the factors that is taken into account when you buy automobile insurance in Los Angeles is your credit score. If you have an excellent credit score, that is taken into consideration and you may be able to secure a lower premium. Many people, however, are concerned that their credit score is not all that great, which may increase their rates. Unfortunately, automobile insurance companies in Los Angeles may legally consider your credit score and increase your rates if you have bad credit. The reasoning is that you present more of a risk to the insurer.

The way your credit score is used is specialized into a formulation that is typically called an “insurance score.” If you have made late payments often, not paid premiums in the past, or been sent to collections, these factors may adversely affect your insurance rates even if you have been a safe driver without any incidents or traffic violations.

“It’s kind of a vicious cycle,” says Melanie Hogan, a Los Angeles resident. “You have bad credit because you can’t pay your bills, which means you have to pay higher insurance bills. It’s like a Catch-22, and for many people, very hard to deal with.”

Different automobile insurance companies in Los Angeles may determine your premiums according to varying criteria, so it is important to do your homework to see how they evaluate your past credit before signing any dotted lines. Talking honestly with an agent may be the best bet in getting a better rate, as well. And of course, seeking to repair your credit will not only benefit you in terms of getting a good insurance rate, but in many other facets of life, as well.

Automobile Insurance Los Angeles – Get INSTANT, free quotes on automobile insurance in Los Angeles. CHEAP Insurance offers personal auto, commercial, trailer, cycle, watercraft, home, and renter policies. With access to hundreds of Insurance Companies, we can find the right insurance to fit your budget. Make your insurance purchase online at, send an e-mail inquiry to [email protected] or over the phone at 323-939-6969.