Want Cheaper Auto Insurance Premiums in New York?
Reader’s Question:
One auto insurance company here in New York is charging me higher premiums for their insurance, citing my not-so-good credit history as reason for my not getting cheaper auto insurance. Do they really look into people’s credit history? What for?
Daisy
Albany, NY
Interesting question. Really interesting question. I asked around, too, and did some research on my own, you see. And here is what I got.
There are some auto insurance companies (I suppose that includes yours there in New York) that take into account one’s credit history. They feel that a good credit standing is a reflection of how good one’s behavior would be when the time comes that he or she would be making the claims on the auto insurance. They think that a good credit history can prevent unpleasant insurance losses. From my own point of view, I do not see where this line of reasoning is coming from.
Well, anyway, apart from your credit history, these auto insurance companies consider a few other things about you, and they are: your age, your driving record, the state you live in, your type of vehicle, and so on. These are the factors that the auto insurance company will consider when computing for your premium.
So, if you’re after cheaper auto insurance premiums, you should start working on cleaning up your credit record this year. By next year, you may ask certification from the Credit Bureau. That way, you may avail of auto insurance discounts that someone who does not have a good credit record normally would not enjoy.
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