Your Credit History Can Affect Your Car Insurance Rate

Posted by Admin at 30 January 2021, at 07 : 35 AM

Your Credit History Can Affect Your Car Insurance Rate

“I am just curious. I am about to get auto insurance. I heard from a friend who just purchased his car insurance that auto insurance companies take a look at a person’s credit history with or without a person’s permission. Is that true? Is that being practiced here where I live? By the way, I am from Chandler, Arizona.”

I’ve read something about your question. And yes, your friend is definitely correct.

According to the federal Fair Credit reporting ACT (FCRA), with or without a person’s permission, insurers are allowed to dig into a person’s credit information. However, insurers (in your case car insurance companies) must inform a person that they are going to collect credit information. Also, they must notify you that you have the right to access said information and have inaccurate information (if any) to be corrected.

I hope I was able to help you with this. Bear in mind that credit history is one the factors that affect car insurance premium. The better your credit history is, the higher the chance of getting lower insurance rate. If you are shopping for car insurance rates in Chandler, Arizona, you can seek the help of a car insurance agent or use the websites.

Automotive Blog