This is a sad fact here in 2019. All auto insurance companies pull your credit. If you have bad credit your rate will be higher than someone with excellent credit. Fair? Not really. But it has become part of the game.
It used to be that your driving history with the DMV – tickets, and accidents could make your policy more expensive but now just being fiscally irresponsible or even falling on hard luck could make your life even harder.
They keep changing the rules and almost no one even bothers to tell you.
Some of the rating factors that influence your auto insurance premiums include:
Age or driving experience
How your vehicle is used (work, school, pleasure)
Driving and claims history
Make and model of your vehicle(s)
How does credit affect car insurance prices?
Most car insurers now use a credit-based score to determine premiums. This was decided by risk management teams who used statistics that show using your credit score helps them better predict your potential for future insurance losses.
What do they look for on your credit report?
They are scanning for these key factors:
Delinquencies or late payments
Length of credit history
Varied types of credit, credit cards, and loans
Can my credit insurance score benefit me?
If you have great credit you might think, ok great! I will get a discount. Sorry, it only works against people not for them. (nice huh?)
Insurers don’t look at credit the same way a financial institution does. They only consider information that might lead to potential losses.
How can I improve my credit score?
The main answer is time. There is no quick fix and any company that advertises otherwise please look out for.
Visit the Federal Trade Commission for consumer credit information and resources that explain how to improve your credit score.
For the best, most fair quotes we would love the opportunity to talk with you. Centennial Insurance Services of Fort Myers, Florida believes in transparency in pricing. Give us a call for a free no obligation quote today. www.cisinsfl.com 239-247-5125.