A recent report confirms that creditworthiness can have a tremendous impact on how much you pay to insure your vehicle.
Reminder: The tax deadline is is not April 15th in Texas this year
First off, someone asked in a panic this week about the tax deadline.
A reminder: That was put on ice, along with everything else by the Texas February winter storm.
This year, Texans’ taxes are due by June 15th.
Add used cars to the COVID-19 shortages
Now to COVID-19 shortages. It happened with toilet paper, disinfectant spray, bicycles, and so many more products because of supply chain challenges during the pandemic.
It has become an issue for used cars, too. Auto shopping site CoPilot reports that when the pandemic hampered production of new vehicles, used cars became a hotter commodity, especially in Texas.
Co-pilot compiled a list of the best cities in which to buy a used car. The major metros in Texas are near the bottom, because of a low supply of used cars. That supply crunch has created higher prices.
The analysis published in late February found that the supply of used vehicles in D-FW was down to 38 days. It also listed the average price of a second-hand automobile in D-FW at $26,795.
Drive safe and maintain good credit. Your score could have more impact on your driving record
Many Texans are paying a lot to insure their cars, even if their driving records are squeaky clean.
MoneyGeek recently found that having a bad credit score has a huge impact on your auto insurance premium, even if you’ve had a speeding ticket or an accident.
That lines up with data from Consumer Reports (2015) when they exposed how insurance companies use credit scores to predict whether someone is likely to file a claim. That analysis included a compilation of many quotes.
In Texas, specifically, they found that insurance costs went up considerably as the applicant’s creditworthiness went from excellent ($1,338 premium), to good ($1,631 premium), to poor ($3,426 premium).
That $3,426 paid by someone with poor credit was more than the $2,435 paid by someone with excellent credit who had a DWI on their record.