Florida Car Insurance And Your Credit Score

You may have a low annual mileage, drive a save car and consider yourself a good driver, but that doesn’t mean you will get a great deal on your car insurance.

If your credit report is not all that good you may have every reason to expect higher interest rates on your credit car, but you will be surprised to find out that auto insurance companies can penalise you with higher premiums too.

Sometimes even as much as 35% to 40% higher than a driver with a spotless credit score. Most of the time insurers will not explain to you why you are not given preferable rates and you may not know you are paying too much because of your credit score.

Most auto insurance companies make the assumption that people with good credit ratings are less likely to cause accidents compared to drivers with bad credit score.

The big problem is that many have a poor credit score because of factors beyond their control such as divorce, job loss or illness. In addition, credit reports can contain errors or be damaged by identity theft.

In a report published by the Public Interest Research Group in 2004 they estimated that a staggering 79% of all credit reports contain at least some errors, and an alarming 29% contain errors serious enough to cause credit problems!
How can you protect yourself?

Monitor your own credit reports regularly (at least once a year) to look for errors. If you find any errors on your credit report, contact the credit agency that issued the report they are required by law to investigate.

If you don’t take responsibility for checking your own credit score regularly then you could be paying more for your auto insurance, find it harder to get loans or credit in general.

Get a free credit report now and make sure you aren’t wasting money on your auto insurance.