Auto Insurance Rates and Your Credit Rating
Joe Ducey from abc15.com wrote the article “Why falling credit may cost you higher insurance premiums” which has some great information about watching your credit so your auto insurance rates are not affected. He contacted the American Insurance Association for some more information on how and why your credit rating affects your premium.
Basically, your credit rating determines predictive behavior and research shows it does impact how many claims you file and how much they will cost. It’s called “risky behavior”. There are other seemingly unusual factors that go into determining your auto insurance rate such as if you are smoker, if you drive during rush hour, if you are good student and how many miles you drive. The criteria varies between auto insurance companies, so it can be beneficial to shop around.
This is yet another reason to keep a close eye on your credit report and check it regularly. Not only does it affect your auto insurance rates, but it affects your mortgage rates, car loan rates and other insurance rates!
Tags: Affordable Auto Insurance, auto insurance companies, Auto Insurance Premiums, Auto Insurance Rates, credit report
