Auto Insurance Quotes and Credit Scores
According to the article “Lower Score? You Will Pay More” by Richard Burnett on sun-sentinel.com, auto insurance companies can increase auto insurance rates upwards of 50% if a policyholder’s credit score drops.
The article states that government regulators and consumer groups are trying to get the auto insurance industry to stop using the credit score as a factor in determining auto insurance quotes. Credit scores have dropped as the economy struggles and banks tighten their lending qualifications making scores drop further. TransUnion is one of the three big credit reporting agencies and they found that consumers in Florida and other large states have seen drops in their credit scores by about 10% and this will in turn affect Florida auto insurance quotes.
The insurance companies want to continue to use the credit score as a factor. They claim if they stop using the credit score when calculating rates, premiums could rise by as much as 70%. The credit score is only one of many factors used to determine a rate but the credit score actually carries more weight than your driving record.
Tags: auto insurance companies, auto insurance quotes, Auto Insurance Rates, credit rating, florida auto insurance, florida auto insurance quotes
