The next time you go to buy car insurance, don’t be surprised if your auto insurance provider runs a credit check. Whether you like it or not, your life is a number when it comes to finances, and when it comes to what you’ll pay for car insurance, your credit rating matters.
Clients often ask us here at theLaw Offices of David Van Sant why their insurance premiums are so high. “I’ve never had an accident or ticket and I pay my premiums on time,” they say. While we are not insurance sales people and don’t proclaim in-depth knowledge of how insurance costs are determined, we do know that insurance rates are based on empirical data, and apparently if your credit is bad, you’re probably a bad driver too.
That statement is made partly with tongue in cheek, but the fact of the matter is if your credit is bad, you get “dinged” in a whole lot of ways. There are good drivers with bad credit in every state in the country. More times than not bad credit is a result of a lost job, an economic impact, and often something completely out of an individual’s control. When your credit score drops, it takes a lot to bring it back up. The insurance industry is profiting from thisbecause they are given authority by the state to legally charge higher premiums to customers with poor credit, whether your driving record is squeaky clean or not.
So, since you have to have car insurance if you’re going to drive in Georgia, it’s probably a good idea to keep your credit clean to keep your premiums down. It’s not enough be an excellent driver. Credit does count. So, the next time you think about paying a bill late or calling in sick to a job where you have to be there to get paid, think about how that’s going to affect every other thing in your life.
Keep driving safe, and if you are in an accident and are injured as the result, contact us at the Alpharetta offices of David Van Sant. We are hear to help.