Your Credit Score and Your Florida Auto Insurance Rates

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Your Credit Score and Your Florida Auto Insurance Rates

Your Credit Score and Your Florida Auto Insurance Rates

As the experts at Consumer Reports tell us, “Your score is used to measure your creditworthiness—the likelihood that you’ll pay back a loan or credit-card debt. But you might not know that car insurers are also rifling through your credit files to do something completely different: to predict the odds that you’ll file a claim. And if they think that your credit isn’t up to their highest standard, they will charge you more, even if you have never had an accident.”

In fact, Consumer Report says, “Your credit score could have more of an impact on your premium price than any other factor.”

So, what can you do? If your credit score could do with a boost, a piece on Forbes.com by Nick Clements offers some suggestions. Checking your credit report is at the top of the list. “You can check your full credit report for free at AnnualCreditReport.com,” he says. “Review all the information and look for information that is not accurate or correct. If you see something that is inaccurate, you should dispute the information with each credit bureau.”

Clements also says, “Focus your resources on open accounts and keep those accounts current.” If you have debt that has been turned over to a collection agency, the damage has already been done.

“If you want your credit score to improve you will need to provide your credit report with positive, new information,” he explains. “You need to demonstrate that the mistakes were in the past and you know how to handle credit responsibly now. But that can be difficult if no one is willing to give you affordable credit.” The solution he says is a secured credit card.

“Get a secured credit card that charges no annual fee and use it monthly. Don’t use more than 10% – 20% of the available credit each month, and pay the balance in full and on time. You can find the best secured cards without an annual fee at sites like MagnifyMoney or NerdWallet.”

Once you’ve boosted your score, you can shop around for new Florida car insurance quotes. The folks at B&B Insurance will be happy to help you get the best price possible. For more insurance tips or to get an insurance quote in Florida, contact us at our Lantana offices: (561) 586-0029 or bbinsure@aol.com.

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