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You probably know that your credit score impacts your ability to get affordable loan rates, rent an apartment, and even find a job. But what you may not know is that your credit score also impacts what you pay for car insurance.

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Why Do Car Insurance Companies Use Credit Scores? More and more car insurance companies are correlating drivers' credit scores with the likelihood that they will file a claim. Basically, the higher a driver's credit score, the less likely he or she is to file a car insurance claim.

Additionally, the average cost of a claim for a person with below average credit is $918, 53% higher than the average claim. The cost of an average claim by a person with above average credit is $558, 23% below the average claim. (Insurance Information Institute)

Do All Car Insurance Companies Use Your Credit Score? The simple answer is no. Insurance laws and regulations are determined at the state level, so each state determines what information car insurance companies can use in determining rates. Also, many states require auto insurance companies to tell consumers what top factors have been used in determining rates. If you're interested in finding out if credit was used to determine your rates, contact your insurance provider.

Are There Any Benefits to Me? While many consumers cringe at the idea of credit scores being used by car insurance companies, the majority of policy holders pay lower premiums because of their credit score.

No matter what your credit history is, you may be able to save money on your car insurance by shopping around at a comparison Web site such as InsWeb.com at least every six months.

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