Have you ever considered that your credit score is used for more than just getting a loan at the bank? These days many types of organizations use your credit score to determine how much they will charge you to do business with them. And if you live in a state that is not California, Hawaii, Massachusetts or Michigan, your insurance carrier has the right to use your credit score as one of the factors that determines your auto insurance premium.Why are insurance carriers using your credit score?Insurance is all about assessing risk or exposure to loss. Auto insurance has always been rated on the vehicle itself. What kind of damage can a compact car like a Ford Focus do compared to an oversized SUV like a Cadillac Escalade Extended Cab. A larger vehicle will take longer to stop and will have a heavier impact resulting in more damage than a lighter weight sedan.These days, with the power of technology, insurance companies have the idea to not only asses the risk of vehicle but the driver as well. Like a computer, a car can only do what its operator tells it to do. Research is showing that people's financial traits cross over into other parts of their lives. People with higher credit scores are paying their bills on time and using good judgment with their credit card limits. And they also use good judgment while driving and tend to get into fewer accidents. People with lower credit scores have not been paying bills on time and may have a high debt to credit ratio among other factors. They are more likely to have accidents and file claims.Insurance companies will charge more or less based on the trends your score indicates. For those with lower scores, the best solution is to start working on improving it as soon as possible. The majority of your credit score is weighted on whether or not you pay your bills on time. That is 35% right there. The next best thing you can do is pay off credit card debt. That factors into 30% of your score. A third thing that can boost your score is to keep long time accounts open. It will show insurance carriers that you can maintain a good long-term financial relationship and is represents 15% of your credit score.The best practice of all is to be on top of and in control your financial picture. The better your credit score, the better you are handling your finances. Banks, insurance companies and others will take notice and you will reap the benefits.