What Car Insurance Companies Do Not Base Premium On Credit?

By Sharon Gibson Posted in Car Insurance News

What car insurance companies do not base premium on credit, are they companies that rely on fair and practical business principles. Ninety-two percent of Auto Insurance Companies base their premiums on credit scores. while the other seven do not. The seven percent who do not base their premium on credit score strongly oppose this, with advisement that it is unfair to rate a persons driving skills based on their fico score. It represents a form of discrimination to those who live paycheck to paycheck.

Payment History

The companies who base premium on credit take into account the payment history on current accounts, as well as debt utilization. They actually compare the debt margin against the yearly income in deciding your premium or if they will even insure you. The debt review also includes a look at and evaluation of credit card debt and payment history. Most Americans have credit card debt, and in addition to that higher than normal debt is rising out of the unemployment rate that is currently being faced.

Steps To Take

There are steps that consumers may take in regard to these unfair practices. Recently insurance companies that have had long time patrons are now in a ditch effort, running credit reports on them to increase premiums. If this happens to you, you can fight back. Check with your State Department of Insurance and ask for a list of companies who do not require a credit score to issue a premium. Speak with these carriers and discuss rates and policy options. Remember, you are free to switch insurers.

Long Term Relationships

Even though the opportunity presents itself, a long term relationship with an insurance carrier is hard to terminate. Therefore, armed with new information on auto insurance policies, you can contact your present carrier to discuss options that are available to you. What car insurance companies do not base premium on credit are those companies who remember what it is to conduct business fairly and equitably. Your rates will be based on driving history and the area where you live the way it has always been done, and the way it should be. I will not be forced to pay high premiums or be denied auto insurance coverage!

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  3. How Does My Credit History Affect My Car Insurance Coverage Rate?
  4. Will Getting Car Insurance Quotes Online Ruin My Credit?
  5. How Can I Lower My Monthly Car Insurance Premium?

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