Maybe, but one of the biggest influences on car insurance rates is something that follows many people through most of their lives. The credit score. The credit score is something that you might never have thought of as being a reasonable factor in your auto insurance rates, but the car insurance companies think that it actually does have something to do with driving. Not only are people with better credit scores more likely to be reliable customers who pay their premiums on time and don’t change companies too often, but they also, according to statistical data, file fewer claims than do people with lower credit scores.

Insurance companies take the credit report and make an insurance score out of it. This doesn’t necessarily take into account all of the same factors as does your regular credit score, and is more interested in regular payments than a long history. And these scores are the driving influences of high insurance rates among good drivers.

Their use is heavily debated. There have been lawsuits filed against certain car insurance companies for using these so called insurance scores to decide premiums, and many say that they target low income and minority families, because those are the groups in which people are more likely to have bad credit history. For the moment, now, they must be dealt with.

Cheers,

Fashun Guadarrama.