You Have a Low or Poor Credit Rating
Most car insurers consider those with poor credit ratings to be higher risk, and raise rates accordingly. Why? If your credit rating isn't great, you've probably missed a few credit card or mortgage payments, or perhaps written some bad checks. That means you're a less reliable insurance customer, as you may neglect to pay them at some point [source: Roberts-Grey].
However, the practice of looking at credit ratings to determine insurance premiums is a bit controversial. There's not a rock-solid link between credit scores and timely bill payments [source: Dykman]. Plus, insurance companies often neglect to inform their customers that credit ratings are a factor in setting their premium rates. If this is a concern for you, ask your agent whether the company looks at credit scores. If they do -- or if the agent hedges -- go elsewhere.