A two-year investigation of more than two billion insurance quotes from companies across the country has revealed that credit history has the biggest impact on the cost of your insurance premium. According to the study by Consumer Reports, the score can take into account what kind of credit card consumers have along with whether they have recently applied for credit.
The car insurance credit score is different from your FICO score and how it figures into your premium varies depending on the insurer and your state, according to Consumer Reports. The insurance companies are using this score not to predict whether you are a good driver, but whether you will file a claim.
A poor credit score has caused rates to more than double in some states. For example, in Florida, someone with an excellent credit score had a premium of $1,409. An individual with a poor credit score had a premium of $3,826. To put this in perspective, the premium amount for someone with a DWI who had an excellent credit score was $2,274.
Consumer Reports’ research reveals that some insurers are penalizing drivers more for having a poor credit score. If you feel your car insurance company has given you a low score, clearing up inconsistencies on your credit report can help. You can download a copy of your free credit report at www.annualcreditreport.com.
If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
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