Does Credit Affect Insurance Rates?

ByMarilyn Katz

Poor credit And Car Insurance

It may not seem fair at all, but auto insurance companies are allowed to increase rates for their customers with credit problems. You could be a great driver, and you could drive a very safe car, but you might never qualify for the cheapest rates if you have poor credit.

Insurers have won the right to consider credit when they look at risk factors. They have demonstrated that people with worse credit tend to make more claims. Higher risk drivers get charged more. If insurers can use low credit scores as a risk factor, they can hand you a higher rate.

Poor credit can happen to great people. Some people have unexpected illnesses or layoffs, and they get behind on their bills. Obviously, when credit suffers, paying bills can be a challenge. That is why it probably seems unfair to get rate increases from car insurance companies at the worst possible time.

Home Policy Rates Can Be Affected Too!

Low credit scores can affect your auto insurance rates. In fact, it can also affect your homeowners insurance rates. Just when you have financial problems, it may seem pretty cruel to get dinged twice with more expensive car and home policy premiums!

Drivers With Bad Credit May Need To Shop Around

If your auto insurance rates have gone up because your credit score has declined, you may need to shop around. A lot of the top insurers do use credit as a risk factor, but not all of them weigh it the same. You need an insurer who will also consider your good driving history and other factors.

Just because you have had credit problems does not mean you will not be entitled to other discounts. Looking for deals should be a priority. When you have credit problems, you probably want to reduce all of your expenses so you can get yourself out of trouble.

If you also own a house, or even if you rent, you may be able to bundle your auto and home policies, with the same company, in order to get a discount. These multiple policy discounts are one of the most common ways to save money on premiums.

The auto insurance business is very competitive today. Because of this, your car insurance rates are also give you an opportunity to save money. If you do not like getting your premiums raised because of your credit problems, you have the right to shop around!

Do you need bad credit insurance? Visit us for more information about fighting premium increases. We would also like to help you fix bad credit as quickly as you can!

Article Source:http://EzineArticles.com/?expert=Marilyn_Katz

Did you find this article helpful?00Get Involved0 commentsSuggest a topicArticle ToolsPrint this articleE-mail to a friendEzinePublisherReport this articleCite this articleStay InformedGet notified by email when new articles are added to this category or written by this author.Subscribe to New Article Alerts:

Insurance: Car-Auto
Marilyn Katz

Email Address:SubscribeCar Auto Article FeedFind More ArticlesSearchSimilar ArticlesHow to Ensure That You Get Favorable Auto Insurance RatesMoney Problems Created by Credit #4 - Auto Loans and ConcernsA Few of Our Favorite Things (That Can Lower Homeowners Insurance Rates)How to Get Bad Credit Auto LoansPoor Credit And Auto Insurance - A Single Effective Method To Saving MoneyTexas Ranks Above Average on National Credit ScoresGetting the Best Cheap Auto Insurance - Car Insurance TipsHome Buyers: Improve Your Credit ScoreFix Credit Rating Hassles With These Simple Tips!Games the Auto Dealer Wants to PlayRecent ArticlesWhat You Need To Do To Obtain Cheap Car InsuranceReasons Why Men Are Better Drivers Than WomenHow Little Lies Can Cost You DearlyChoosing A Car Insurance Company To Insure Your Car WithFacts On Cheap Young Driver Car InsuranceThe Benefits Of Online Comparison Shopping For Your InsuranceInformation About Connecticut Car InsuranceSave Money by Comparing Cheap Car Insurance Quotes OnlineWhen Was Car Insurance Invented and Why?Having Your Car Protected In Spite Of Terrible Claim HistorySubmitted On March 13, 2012. Viewed 2 times. Word count: 412.

MLA Style Citation:
Katz, Marilyn".".13 Mar. 2012EzineArticles.com.14 Mar. 2012 .APA Style Citation:
Katz, M. (2012, March 13). . Retrieved March 14, 2012, from http://ezinearticles.com/?Does-­Credit-­Affect-­Insurance-­Rates?&id=6937243Chicago Style Citation:
Katz, Marilyn "." EzineArticles.com. http://ezinearticles.com/?Does-­Credit-­Affect-­Insurance-­Rates?&id=6937243EzineArticles.com© 2012 EzineArticles.com
All Rights Reserved Worldwide

About UsFAQContact UsMember BenefitsPrivacy PolicyShopSite MapBlogTrainingVideo ArchiveAdvertisingAffiliatesCartoonsAuthorsSubmit ArticlesMembers LoginPremium MembershipExpert AuthorsEndorsementsEditorial GuidelinesTerms of ServicePublishersFollow UsTerms Of ServiceEzines / Email AlertsManage SubscriptionsEzineArticles RSS

View the Original article