Should Auto Insurance Rates be Based on Credit?
Posted by: info | December 19, 2006
Did you know one factor that impacts you auto insurance rate is credit? More and more auto insurance companies are basing credit history to determine your auto insurance rates. My friend has a sister 2 years older who pays more for auto insurance just because of credit. Can this be true?
Two sisters with the same make and model cars, living in the same zip code, same insurance company and similar ages with different auto insurance rates. The older sister pays more for auto insurance yet has a better driving record. The younger sister pays $97 a month and has one accident on her driving record. The older sister pays $115 a month for the same coverages with no accidents or tickets on her driving record. In fact she has never even been pulled over by a police officer in her life. The only difference iwe can think of is their credit history. The younger sister has better credit than her sister and pays less for auto insurance. Is this right? Could I be missing something else? The younger sibling has a bad driving history compared to her elder and pays less for insurance. Here is your final equation in this situation. The younger sister has good credit but an accident and pays less than the older sister with bad credit, no accidents and has never filed an insurance claim. Is this trend better for insurance companies?
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