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Credit score and car insurance
You are in need of car insurance. As a smart individual you know that it will require some digging around. Jumping into the first insurance company that you thought of is not the best decision. Calling at least 3 or 4 insurance providers in order to find the best coverage and the most comfortable price is the way to go (or you can call (888)SLAVSKY and we’ll do it for you! Plus we work with a greater number of companies, so you have a better variety).
As you search for your ideal auto insurance quote, you see that prices differ from company to company. What does your premium depend on? There are a few things that determine how high or low your monthly payments will be, for example, your age, car year, model, make, and your previous driving record. In some states insurance companies also check credit history. Yes, just like creditors or lenders want to know how well you are with the payments. So, all those maxed out credit cards, collections, foreclosures and late payments are coming back to you every time someone refers to your credit score.
One may wonder why insurance company would rely on this number. Insurance providers say it allows them to price their product more accurately. Multiple studies show that people with a poor credit history are of a greater risk, they have more accidents, claims, repairs and legal fees than individuals with a higher score. Companies also believe that it encourages people to be more financially responsible, which are being rewarded by insurance discounts.
There is a lot of disagreement from the consumer’s side. Why should I be judged by the number of my credit cards? Why not just concentrate on the driving record?
Fortunately, in California your credit score does not affect your car insurance rates. It is very difficult time for all. Sadly, present economy makes it more difficult to be in charge. It rules our employment, the ability to pay mortgages, and other bills. Credit histories that have been built for many years are completely destroyed. A lot of doors are shut because of that. And unfortunately, raised insurance rates make us fall even farther behind.
