Car Insurance And Credit Ratings
Your credit score. It helps you buy a house and a car. And apparently, it can affect the rate of your car insurance. The economy is tough, and you might have missed a payment or two on one of your credit cards. Don’t be surprised if this is taken into consideration when determining the rates for your car insurance. Some people are saying that their rates have doubled due to low credit scores. Is this fair? Because, when it comes down to it as long as you are paying the insurance company on time that should be all that matters, right? Wrong.
Although, it may seem unfair, insurance companies argue that if you are not responsible with your money you may be unsafe when it comes to your driving on the road. And therefore, they feel this gives them a legitimate case for raising your rates if your credit score is low even if you have been with their company for a long time. Studies suggest that for the most part these situations effect blue collar workers who are struggling to make ends meet and will have an even more difficult time making the higher payment for the car insurance. People are wondering, is this fair?
Tags: credit ratings, insurance companies, insurance costs
