Does Geico Use Credit Scores? (2024)

FAQs

Does Geico use your credit score? ›

Yes, Geico does use your credit score as a factor when determining your car insurance rates, as do most major insurers. However, credit checks by auto insurers do not harm your credit score and are only done in states where it is legal for your credit score to affect your rates.

Most U.S. insurance companies use credit-based insurance scores along with your driving history, claims history and many other factors to establish eligibility for payment plans and to help determine insurance rates. (Again, except in California, Hawaii and Massachusetts).

Yes, you can be denied car insurance coverage if you have bad credit. However, most companies will likely give you a higher insurance premium if you have low credit scores.

Does credit score affect car insurance rates? Yes. A higher or lower credit score can have a big impact on your insurance rate. Poor credit increases full coverage rates by 86% compared to good credit.

You may have your insurance application denied for a variety of reasons, many of which are tied to personal factors: You have several moving violations and a less-than-perfect driving record. Your license has been suspended or revoked. You drive a fast, high-performance vehicle.

Geico may have raised your rates because of changes to your policy or circ*mstances. Examples include adding a new type of coverage, becoming eligible for an additional type of discount, being involved in an accident, or buying a new car.

What Is a Good FICO^® Score? The base FICO^® Scores range from 300 to 850, and a good credit score is between 670 and 739 within that range. FICO creates different types of consumer credit scores.

FICO is an acronym that stands for: Fair Isaac Corporation, the company that developed the FICO® credit scoring. FICO® credit scores are the auto industry standard for determining a potential buyer's creditworthiness.

Will my car insurance go up if my credit score goes down? ›

On average, drivers with poor credit pay 115 percent more for full coverage car insurance than those with excellent credit.

The short answer is no. There is no direct affect between car insurance and your credit, paying your insurance bill late or not at all could lead to debt collection reports. Debt collection reports do appear on your credit report (often for 7-10 years) and can be read by future lenders.

Most insurance companies using credit information will include it as a factor in determining your rate. For example, someone with a relatively high credit score may pay a lower premium than someone with a relatively low credit score.

An insurance score is a score calculated from information on your credit report. Credit information is very predictive of future accidents or insurance claims, which is why Progressive, and most insurers, uses this information to help develop more accurate rates.

Customers belonging to lower credit tiers are expected to file more claims based on statistical analysis, so they receive lower insurance scores — and in turn, higher rates.

Your insurance rate won't go up as a result of your first otherwise surchargeable, at-fault accident. Subsequent occurrences do not qualify for Accident Forgiveness. Accident Forgiveness eligibility is determined by your specific policy type, as well as your state laws and regulations.

Delaney Simchuk, Car Insurance Writer

Geico can be hard to deal with in some cases. Although Geico receives a relatively low volume of customer complaints according to the National Association of Insurance Commissioners, Geico has a below-average rating for customer satisfaction from J.D. Power.

While your insurance score isn't the same as your credit score, it's calculated using the same information. Someone with a high credit score likely has a high insurance score.