Your Credit Report Got Your Car Insurance Premiums Too High?

by

Shay West

Unknown to many, most car insurance companies check your credit history. This changes how much will your insurance cost be.

The reason why auto insurance companies do this is because they seem to think that there is a direct relation between the consumers credit score and the future claims to be made. A flawless credit record is compared with being responsible and mature. To insurers, it interprets to being good in managing the finances spills over to being responsible behind the wheel. Having those features says lesser chance of making serious insurance claims. It may seem unfair, but unfortunately, that the way the cookie crumbles for some. Even middle class consumers have struggles balancing the check book.

Not all car insurance providers use this as a gauge in raising your insurance rates. Others factors like age, geography, work and driving histories come into play. A auto insurance company that uses credit record as one of their barometers in knowing your rate may not be the one for you. They might even disqualify you from getting other discounts that you are really qualified for.

Is this even fair? According to the Federal Fair Reporting Act, the answer is yes. Bear in mind though that each carrier may vary in their ways of determining your credit score. You may score high in some, but not so lucky in others. They are not even compelled to tell you what your credit score is.

If you do not have a good credit score, there are some insurance carriers that do not use credit standing as one of their deciding factors in your auto insurance rates. You can seek online to find these insurance companies.

Be sure that the auto insurance provider has your correct name, address and social security number, least you be mistaken for someone else. You might just have the chance to be namesakes with a person who has a bad credit record. It is only right that you show more proof of your financial fitness because every discount goes a long way in lowering your insurance premium. Talk to your car insurance group agent about this.

If you are serious to find the cheapest auto insurance rate, maintain a good credit score now. Always pay your bills on time. It would also be helpful if you choose EFT or electronic fund transfer when paying your monthly auto insurance to avoid lapse with your payment. Be sure you do not have lapse in your car insurance policy to avoid any problem in the future. Getting a lower rate on vehicle insurance is tricky but very obtainable.

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Your Credit Report Got Your Car Insurance Premiums Too High?}