Consumer Reports: Why poor credit can be as costly to your auto insurance ... - WXYZ
(WXYZ) - Car insurance commercials tout low rates but don’t tell you just how the companies set those rates. Consumer Reports’ two-year investigation found that many major insurance companies base prices in part on a hidden credit score that can take into account things like what type of credit card you have or whether you’ve applied for credit recently. That car insurance credit score is different from your FICO score, and how it figures into your premiums varies depending on the insurer and your state. In Florida, the average annual premium for those with an excellent car insurance credit score is about $1,400. With just a “good” score, it is more than $1,700, and with a poor score, more than $3,800. That’s a much higher premium than for those... Consumer Reports research shows that some insurers penalize you more for a poor credit score than others. For those drivers in Florida with a poor score, Amica Mutual charges $7,200, but GEICO charges $2,300. So GEICO is a better choice if you have a poor score in Florida. If you suspect that your car insurance company has given you a low score, ask the major credit bureaus —TransUnion, Experian, and Equifax — for your credit report and correct any inaccuracies. Source: www.wxyz.com
