Many auto insurance companies have turned to credit scoring as a means of establishing levels of risk. Although a previous payment history is unlikely to determine your chances of being involved in a road traffic accident, your auto insurance carrier will be able to view your responsibility levels. If you have an extended record of meeting your credit obligations on time, you will be seen in a more positive light. Road users with a less-than-perfect credit score my find that they are susceptible to higher auto insurance rates and may lose the opportunity to pay on a bi-weekly or monthly basis.
Additionally, statistics show that motorists with a poor credit rating are actually more likely to be involved in a road traffic accident. Although there is no logical explanation for this, one may guess that financial hardship brings its own worries and this could result in a split-second lapse in concentration.
Luckily, road users actually have options available to help them avoid the higher auto insurance rates associated with a bad credit rating. If you believe that your current record may not be entirely accurate, it is advisable to obtain a copy and to study it for any entries that may be either incorrect or have already been paid in full. It is not unusual for settled items to remain on a credit file so checking manually for mistakes can be a worthwhile practice. Making a concerted effort to settle other debts will see further entries removed from your credit file and this will eventually lead to cheap auto insurance quotes in the future.