A bad credit score can mean costly insurance rates
Drivers with bad credit have always had a problem obtaining affordable car insurance.
Few insurance companies would deny offering coverage to such drivers, but the policies available tend to be pricey. Between insurance premiums and deductibles, some of the cheapest policies drivers with bad credit can get will cost them more than $300 every month. GEICO and Farmers are two insurers looking to ease the stress of the issue by offering plans tailored for motorists with bad credit.
Credit score plays a vital yet little known role in how insurance companies determine rates in a lot of states.
While there are a multitude of other factors that contribute to the determination of rates, credit score has heavy influence in the realm of car insurance. Insurers can easily check a customer’s credit score while fabricating a quote. The score gives them insight on how responsible the person is with their money and whether or not they continually live beyond their financial means.
GEICO, one of the nation’s largest auto insurance companies, suggests that drivers with troublesome credit scores use online quote aggregator sites, like Progressive. These sites take a broad approach to rounding up multiple quotes based on the information they are given. This will help customers find policies that are more considerate of their situation. Farmers Insurance, another company that offers a line of auto insurance coverage, also encourages drivers to take advantage of the resources available to them online.
Bother GEICO and Farmers have policies that are affordable to drivers with an unfavorable credit score.
Credit rating is not used in all states, California car insurance being one of those exceptions.