Discount Car Insurance

The use of credit records makes some people wonder if the amount of money they earn has a bearing on their car insurance. But the credit scoring formulas that car insurance companies use don't consider your income. Nor do they include your age, sex, where you live or your marital status. So you don't need to have a set amount of income to qualify for discount car insurance.

The basis for using your credit record in the first place is due to extensive research which showed that a good credit record corelated to fewer and less expensive claims. Which means that for a discount car insurance company to offer its best rates, it wants to find people who have shown financial responsibility. And when scoring your credit, what's looked at are such things as the number of credit accounts you have and how long you've had them, what's the size of your overall debt, whether you've had any serious debt problems and what your bill-paying history has been.

Your credit can have a significant impact on what you pay for discount car insurance or if you get it at all. And because of this, it's important to know if and how your credit is affecting what you pay. Insurance companies are required by law to tell you if they take an "adverse action" against you because of your credit. But there's no set definition for "adverse action" or how you should be notified. So to be sure, it's best to ask.