Does your credit score affect your car insurance rate in Canada?
Depending on where you live, the answer is yes
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You’re finally on the road in your revamped vintage Bronco, but if your credit is poor, you could be leaking money as you go.
Ordinarily, your credit score is used to show lenders that you can be trusted to make your monthly payments. However, depending on which province you live in, your credit score can also affect your monthly car insurance premium.
What’s the connection? Insurance companies argue that people who are responsible for their credit are more likely to be responsible with their cars, keeping them in good repair and following the rules of the road.
If you live in Ontario or Newfoundland and Labrador , you can breathe easily. It’s against the law for auto insurance companies to use your credit score.
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In September of 2021, the largest auto insurer in New Brunswick , Wawanesa, successfully convinced the province’s Insurance Board that drivers with bad credit do pose a higher risk to make a future claim.
Quebec and Prince Edward Island don’t have rules forbidding the practice, but it’s not common in the Maritime provinces.
No matter where you call home, the best way to save on car insurance is to shop around before you settle on the right policy for your needs and budget. A site like Rates.ca will do all the price comparisons for you and present you with the highest-quality auto insurance at the best rate available to you.
How much do I need to worry?
Since drivers with an A-plus score can get behind the wheel with the best deal, they’re probably pretty happy to hand over their credit rating and save a few bucks on their premiums. If you don’t know your score, you can check it for free.
