Auto Insurance Quotes

After you get your auto insurance quotes you may be uncertain as to if your credit negatively affected the rates. The Fair Credit Reporting Act requires that insurance companies notify you when they take an "adverse" action against you due to your credit report. But the best way to be sure, is to ask an agent if it did. And if so, ask what in your credit report caused the negative effect.

Credit has now become a factor in getting auto insurance quotes because the insurance companies have determined there's a correlation between credit and risk. The analysis of millions of people has shown that if you have good credit you tend to file fewer and less serious claims. So the auto insurance companies see you as a lower risk and charge you lower rates.

For people who have little credit, the results can be similar to having poor credit. Because the insurance companies have less information to work with, they usually assign persons with light credit histories to a higher risk group. But auto insurance quotes aren't fixed in stone. As a person's credit improves, the insurance company can take it into account and lower the premium.