Best Auto Insurance Rates

When auto insurance companies studied the records for millions of claims, they found that drivers with poor credit cost them more than drivers with good credit. This was because the poor-credit drivers made more claims and for larger amounts than the good-credit drivers. And so now, most insurance companies only give their best auto insurance rates to those drivers with good credit.

It's estimated that over 90% of all auto insurance companies use your credit rating before issuing you a policy. But if you credit has affected your rates, it's not always easy to know it, unless you ask. And since errors on credit reports are common, even if you have excellent credit it's still important to ask, so that a clerical error won't be held against you. If there is a problem, you can also find out what's necessary to fix it, so you can get the best auto insurance rates.

Unlike lenders, auto insurance companies don't take your income into account when judging your credit. Your age, gender, marital status, or where you live are also not considered. What is rated are such things as how many credit accounts you have and how long you've had them, the types of credit you have, whether you own your home and your record for paying bills. Serious negatives like bankruptcies and judgments are also noted.