What is an auto insurance score?
The Bankrate.com financial term of the day is: "Auto insurance score."
An auto insurance score is similar to a credit score. It's a confidential rating that uses information about how well you handle money to help determine what you pay for car insurance. Insurers believe that people who are responsible with their checkbook will be responsible behind the wheel, too. So if you pay your bills on time and haven't opened credit cards willy-nilly, you'll be assigned a high score and be rewarded with a good auto insurance rate. However, if you've filed for bankruptcy or are otherwise a mess with money, you'll get a lower score and higher rates.
Want to pay less for car insurance? You'll need a good auto insurance score, and that means you need good credit.
To find the best auto insurance rates, click on the insurance tab at Bankrate.com.