Late payment on autoinsurance - does it affect credit score?
Jun 25, 2014, 5:22 pm
#1
Original Poster
Join Date: Feb 2010
Location: SFO
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Posts: 803
Late payment on autoinsurance - does it affect credit score?
I've just missed the due date for 3 days, does it matter for credit score? I don't even remember if I gave them my ssn. So hopefully not? 
Jun 25, 2014, 8:09 pm
#2
Join Date: Feb 2009
Posts: 6,607
Since auto insurance rates are tied to credit scores you had to give our SS # to get the policy.
BTW, I think using credit scores for auto insurance is BS, just an excuse to raise a safe drivers rates
Jun 26, 2014, 2:58 am
#3
Join Date: Feb 2010
Location: US
Programs: (PM)AA SPG (Marriott), Hilton
Posts: 1,040
If you pulled your credit report and the insurance company isn't on it, they probably won't be reporting this. A more serious issue like a default judgement could make it to your CR, but an insurance company will probably cancel your policy.
Even most CC's are reported to let the 1st late payment go as far as reporting it goes. They might whack you the late fee. If you call them, and it's your first time, they might take it off. CC's usually don't get excited until you are over 30 days overdue.
If your insurance company hits you with a late fee, and this is your first time, call them and ask them to take it off. Worse case is they say 'no'
Internally, the insurance company could have their own score. If you are late once, probably no big deal, but a person who always pays late could be flagged as riskier and that could effect insurance rates, if the government insurance board permits them to do so in this way.
Since auto insurance rates are tied to credit scores...
... you had to give our SS # to get the policy.
Jun 26, 2014, 3:16 pm
#4
Join Date: Feb 2009
Posts: 6,607
I checked after they bumped my insurance $50/6 months even with an 790 Fico as it dropped because of churning so I didn't qualify for the best rate anymore.
I believe 5 states have laws where credit scores could not be used to deny a person insurance
Only 1 state had a law where credit scores were not used to determine rates
"Five states have limitations on insurance companies' use of credit scores. Hawaii prohibits the use of credit bureau ratings in auto insurance rate determinations. Georgia, Illinois, Utah, and Washington prohibit insurers from using only credit information in decisions to cancel or deny renewals of auto insurance policies "