Florida Automobile Insurance

Florida automobile insurance companies starting checking credit reports after millions of insurance claims records were analyzed. The analysis showed that people who had poor credit tended to file more claims and costlier claims than those people with good credit. It seems that people who take care of their finances are also generally careful with the rest of their lives.

In judging your credit, Florida automobile insurance companies usually compute a credit score. The score is a weighted grade of your credit that includes such things as the number of accounts you have, your total debt, how long you've had credit and how you've paid your bills. And unlike other factors insurance companies use to set prices, your age, sex and where you live are not a part of your credit score.

So how do you know if your credit is affecting what you pay for Florida automobile insurance? The best way to know is ask your agent. Federal law requires that insurance companies tell you when they take an "adverse action" that's due to your credit record. But since "adverse action" isn't legally defined, companies define it in different ways. That's why you can only be sure of your credit's effect by asking.