There are many factors that can affect your credit score. Some changes in your credit score are not due to delinquencies. Others are normal events like a month of increased spending on a card for an emergency, or a difficult pull to apply to a car loan. However, your FICO score could impact how much car insurance you pay, depending on the time before the event.
Florida insurance agencies are able to use credit, unlike California, Hawaii, and Massachusetts, where credit cannot be used as a determinant of car insurance premiums. There are alternatives if your credit history doesn’t allow you to afford higher premiums. To save money, you could look for Florida car insurance with poor credit. It is possible to find cheap car insurance in Florida for poor credit. However, it could save you some money.
Credit: Average cost of Florida full-coverage car insurance
High premiums are common for Florida car insurance with bad credit. It may surprise you to learn that premiums can be higher for those with lower FICO scores than those who have been in an accident. Check out how your credit score could affect your premiums.
Best car insurance in Florida for people with bad credit
Florida drivers pay higher premiums that the average. On average, a vehicle owner with good credit pays $2364 annually. A vehicle owner with good credit will pay $2,364 per annum on average.
It’s difficult to predict how much your rates will rise until they do. Different carriers may categorize policyholders in different ways. Equifax’s, Experian’s and TransUnion’s credit score systems can give you an idea of where you might fall in car insurance rates that are based on credit. Scores below 580 are considered “poor.” Scores above 670 are considered “average.” 800s is reserved for those with excellent credit and the lowest car insurance rates.
What does Florida’s credit score have to do with my car insurance rates?
Insurance Information Institute (III), explains how credit can affect insurance premiums. According the III “Studies indicate that how someone manages their financial affairs (which are what these scores indicate) is a good predictor for insurance claims.”
The use of credit history to provide property coverage such as home and vehicle insurance, is regulated by the Florida legislature. Insurance companies cannot restrict, deny, cancel, or request credit reports based on your credit history. The Florida statutes allow for carriers to charge applicants and policyholders a higher amount due to the increased risk associated with poor credit.
Protecting your credit score or working to improve it is the best way to avoid high-priced Florida bad credit car insurance. It takes time to improve your credit score. It is possible that you won’t notice a significant difference in your car insurance rates for several months, or even a whole year.
What are other factors that impact Florida’s auto insurance rates?
Your credit history is just one factor that can impact your car insurance premiums. A True Cost Report was published by us with information about how changes can impact your car insurance premiums. This report may be the most important.
- Driving record: A DUI conviction, being at fault for an accident, or having one or more moving violations like a speeding ticket can all increase your car insurance premiums. According to Bankrate, a DUI can lead to higher car insurance premiums than poor credit.
- Your location: Based on the number and severity of accidents or thefts that have occurred in your area, some areas in Florida may be subject to higher car insurance rates.
- Type of vehicle: There are some cars that insurance is cheaper than others. The Toyota Prius, Toyota Camry and BMW 330i are three of the most costly vehicles to insure.
How to get Florida car insurance cheap with bad credit
You can get Florida car insurance with bad credit cheaply. These are some ways to cut down on your premiums.
- Compare quotes: Comparing rates from multiple carriers and switching provider could be the best way to save money on car insurance.
- To check your credit score, you can get a annual credit report for free. There are some errors that could affect your score. For example, a report that was incorrectly sent from someone with the same name as you or an account that has not been updated since you paid off the balance. You can improve your credit score by disputing errors.
- You should look for discounts. Most carriers offer car insurance discount which could lower your premiums. You may be eligible for a discount through your employer or by being a member of the military. Bundling auto and home coverage together could help you save the most.
Questions frequently asked
When I apply for insurance, will I be subject to a credit check?
Soft pulls are not likely to adversely impact your credit score like a hard-pull. It is possible to get quotes from multiple carriers without worrying about each inquiry creating a credit report.
Why is Florida car insurance for people with bad credit so expensive?
Car insurance companies have found that those who are known for not paying their bills on a regular basis tend to file more claims.
How can I get car insurance that is cheaper?
To save money on your car insurance, you can get quotes from multiple carriers and compare them before choosing the best. Consider using more than just the online quote tool. There may be additional discounts available for switching providers, or depending on the number of vehicles you intend to insure. This will allow you to search for the best Florida car insurance with bad credit.
