A: Since I can’t see your records with your car insurance company, I can’t tell you for sure, but I would say that it is very likely that the two are related, and it is also very legal. Although car insurance companies won’t do this every time you renew your policy, many do check your credit when you get a new policy and do so again once every one to three years. Companies who do this, and most do, are following the lead of companies which sell other types of insurance by using credit reports to compile an insurance risk score.

For those who have bad credit and are excellent drivers, it may seem more than a little unfair for them to be charged so much on their insurance for something they think is unrelated, but many 24 year old male drivers could say the same. What studies show, though, is that if you have bad credit, you will probably be filing a few car insurance claims. People with bad credit also have a history of, like you, defaulting on payments, and car insurance companies want customers they can be sure will pay them every month.

A: Maybe there is, but it depends on what you were studying so hard on to get that good student discount for your car insurance policy. If you were working on a degree in the field of science or mathematics, particularly in engineering, then your looking at a savings from some companies simply for that. Although this discount is still not widespread, it is taking hold in the car insurance industry, as many studies have found that people in the above fields are more meticulous and pay attention o detail, and, the kicker, file fewer car insurance claims.

If you don’t have one of these degrees, or even if you do and decided to go into the field of teaching, you can get another discount by joining a teacher’s union. Of course, unions do have membership fees, but it will be like getting free union membership because your discount will be around the amount of the fees, and you probably would have joined the union anyway.

1. Raise your deductible amount to as high as you feel comfortable – this can drastically reduce your annual premiums

2. Join a credit union or bank affiliate that offers insurance discounts – even Sam’s club and Costco offer discounts these days