While many drivers and homeowners understand the importance of having auto and home insurance, they may not be aware that their credit scores can affect insurance rates.

Since most insurers require credit information to determine eligibility for coverage and to set premiums, it is important for consumers to understand how their credit influences purchasing policies.

Having bad credit may not be directly linked to being a bad driver, but drivers who have bad credit and a bad driving record could pay up to 50 percent more on Virginia auto insurance than a good driver with good credit. The greater risk insurers take when providing coverage, the more policyholders can expect to pay for their premium.

Before seeking coverage from a new provider or purchasing a policy for the first time, drivers and homeowners are advised to take steps to improve their credit scores. This can be done by simply paying bills on time, while not applying for new credit lines can also maintain a decent score.

Drivers should also check their credit report for any errors.