Keep auto insurance payments low with a high credit score
As people cope with making ends meet during the current recession, many are discovering the link between maintaining a high credit score to keep auto insurance payments down, and the consequences that can occur when one's rating takes a hit.As people cope with making ends meet during the current recession, many are discovering the link between maintaining a high credit score to keep auto insurance payments down, and the consequences that can occur when one's rating takes a hit.
According to auto insurance consultant and actuary Mike Miller during a speech to Florida regulatory panel, credit scores were often one of the top three factors taken into consideration by insurance companies when coming up with one's monthly payment.
"Past accidents and tickets are predictive, but they barely make it into the top 10 factors," he added. According to the Orlando Sentinel.
Florida's chief financial officer Alex Sink recently added his dislike of the connection between credit scores and insurance rates, saying it only added to the troubles of those already in need.
"I am opposed to the use of credit scoring when determining the availability and cost of auto insurance. We should not be kicking Floridians when they are down," he said, according to the Sentinel.
Perhaps spurred by increased rates during the recession, a new study from a leading auto insurance provider - citing a recent Google and TNS report - found that 90 percent of those shopping for car insurance said getting a lower rate was their main goal.
Attaining this goal, the study added, was a hit or miss proposition depending on where one lived. While it cited a RateWatch survey that found car insurance rates had jumped 12 percent in 2009 from the year prior, it also found that Massachusetts drivers had seen a drop of 8 percent in their rates while other states such as Alabama, Mississippi, and Ohio had witnessed declines in recent months.
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Posted: September 14, 2009
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