Because they're local, Florida auto insurance companies know your area's driving situations and
are in the best position to give you the fairest rates. While the the use of local knowledge is an
obvious way to determine premiums, there's also a little-known factor that's assuming more
significance in the cost of your insurance. Florida auto insurance companies, like insurance
companies nationwide, use your credit rating to help decide how much you pay for insurance.
Why Florida auto insurance companies use your credit information
In the last ten years there's been a trend in the insurance industry to check credit ratings
before issuing insurance. Through extensive testing, the industry has found that there's a
correlation between how stable a person is financially and the insurance losses they incur.
So on average, the people who are careful with their finances are also careful with the rest
of their lives.
How Florida auto insurance companies use your credit rating
The insurance companies use a statistical grading of your credit called a credit score. They
use your credit score to help determine whether they'll issue you insurance and if so,
what your premium will be. And the difference between what you pay if you have poor
credit and what you pay if you have good credit isn't small. Depending on the insurance
company, if you don't have the best credit you could be paying anywhere from 20% to 200%
more.
How to tell when Florida auto insurance companies use your credit
Ask them. They won't tell you the credit score but they can tell you if and how your credit
is affecting your rates. If your credit is causing a problem, you can ask to have it
rescored after it's improved.
To get online quotes from Florida auto insurance companies, please go to
cheap auto insurance quotes online.
