If the time has come for you to renew or obtain new insurance on an automobile you should be aware that companies can increase the premium you pay, transfer your account to another company or even cancel you outright if they combine your credit score with your application or renewal information and your driving record. The majority of insurance companies regularly do this to determine if you are a high risk.
Some companies do this as a maneuver to deny offering coverage even if you have never made a claim and even if your payments to the company are always on time. Therefore it is sometimes wise to know your credit rating first and even to consider finding a company that offers insurance without a credit check.
Generally the reason why insurance companies do a credit check is because they just assume that there might be a connection between being stable financially and being a risk for insurance. Most companies keep records on credit scores and on insurance claims and they find that usually the lower your score then the more likely you are to make a claim or to even commit some sort of fraud in reference to a claim.
This does not mean that everyone would do this, but it does mean that you do happen to fall into the area because of your low credit rate. It should be noted that insurance scores don't speak of any instances of any one person, but of the average behavior of those with the same credit history.
It has been noted that those who have a poor credit score do tend to file more claims but there are always exceptions to this. Certainly there are those who have never made a claim but still have a low score.
One of the main reasons why car insurance companies for instance want to have a credit check done is to be able to predict claims and to be able to manage the risks so as to offer more people a better price for the insurance.
There are of course companies that will offer insurance without a credit check. Finding one of these companies would be your best option if you suspect your credit score may be low enough to effect getting insurance.