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Your personal credit will affect your price of car insurance

Mar 18, 2008
How are your car insurance rates fairing due to your credit history? For some people it isn't an issue but for others it is going to be one more area where they feel the financial pinch due to their low credit scores. Yet it is often a catch 22 for many people because the law will catch up with them if they drop their car insurance coverage. In many areas it just isn't an option to be without it.

There are plenty of variables that have to be taken into consideration for a quote for car insurance. They want to know your age, marital status, your driving record, the type of vehicles, and how all will be driving them. Now you need to be prepared to give your consent for a credit check as well. If you already have vehicle insurance the law gives that agency the right to run one without contacting you first.

I discovered this myself a couple of months ago, and I was very surprised. I have never had a speeding ticket. I will tell you though that I have been pulled over many times for speeding and should have gotten more than just a warning. I have had the same car insurance company for years. A few months ago I opened the bill and found out that the cost had increased by about $30.

This means I will be paying more than $300 this year more than before for the same coverage. I can tell you I am definitely not happy with this. I didn't take the news well and tried to take action. Yet I found there really wasn't anything for me to do but to write that check for the extra amount and try not to let it eat away at me.

I figured it may be time to start looking for another car insurance provider. Yet after a handful of phone calls and online quotes it was apparent that this wasn't an isolated instance. Rather it had become the norm among the various car insurance companies out there. In fact, I soon learned the prices were better offered by my current car insurance company than switching to someone else.

I really think that insurance companies are quite a rip off, and this just added more fuel to the fire. My perception is that you pay into insurance for various reasons and then once you have to file a claim they will increase your premiums. I also worry about my homeowner's insurance going up next for the same reason.

This is just one more reminder though to people of all ages that your credit is something you really have to take care of. While there are unforeseen circumstances you will have to deal with, many issues with personal credit can be avoided. You don't want to constantly have additional fees with your bills due to a poor credit rating.

For young individuals though, it is vital that they know this information. The cost of car insurance when you are young is unbelievable as it is. You don't want to have to pay a dime more than you should have to for it. You also can't afford not to have it. Even if the car insurance laws aren't mandatory in your area, you still need to make it something you have. You just never know when you will need it.
About the Author
Robert Bain is fascinated by the secret credit industry. He follows personal credit related issues such as credit cards, debt relief, car loans, debt relief services and scams bad credit cards offers. Don't reprint the same version as everyone else.
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