is available at all dealerships...with internet access!!

Written by Erick Pace

You are ready to buy your first car. Researchingrepparttar right vehicle can be a daunting task. You search forrepparttar 136912 right type of vehicle you need,repparttar 136913 color you want,repparttar 136914 type of interior. You have spent countless hours narrowing downrepparttar 136915 right vehicle for you. You find out whatrepparttar 136916 MSRP (Manufacturer's Suggested Retail Price) is by usingrepparttar 136917 following services:

Offline: . Consumer Reports Magazine . Auto Week Magazine . Your local newspaper's auto section . Local dealers

Online: . Consumer Reports . - . Kelly Blue Book - . NADA guide book -

Now you haverepparttar 136918 right model in mind. You are ready to purchase a car. You now have a good idea of how much you should spend, how much you are willing to spend.

You go torepparttar 136919 dealership and spend hours negotiating a price. After you have agreed to a price,repparttar 136920 sales clerk asks do you have insurance. Because this is your first vehicle,repparttar 136921 thought never crossed your mind. The sales clerk says you will not be able to driverepparttar 136922 car offrepparttar 136923 lot until you have secured insurance. You get out a phone book and start calling around for insurance quotes. You get several prices and you are instructed that you must come torepparttar 136924 insurance agency to fill out paperwork. You must then go back torepparttar 136925 dealership and show them your insurance policy. This has been a long and stressful day.

Understanding How Your Credit History May Affect Your Car Insurance Coverage

Written by Jon Register

Many personal auto insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new insurance, keep in mind that many insurers are looking at your credit history. I hope that we will be able to let you know why and how they do this.

The reason that some insurance companies use credit information is because they feel there is a direct correlation between consumer's credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to severe insurance losses.

Many insurance companies still use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet,repparttar companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums.

The companies that do use credit scoring will still use other factors in determining your premium. They will also use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance.

Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair credit-reporting act says "Reasonable procedures. It isrepparttar 136898 purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meetingrepparttar 136899 needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable torepparttar 136900 consumer, with regard torepparttar 136901 confidentiality, accuracy, relevancy, and proper utilization of such information in accordance withrepparttar 136902 requirements of this title." This can be found at

If you feel that your credit history is better thenrepparttar 136903 insurer can find, make surerepparttar 136904 insurer has your correct name, address, social security number, and date of birth.

Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an "insurance credit score." An insurance credit score is developed by using statistical techniques and methods to predictrepparttar 136905 likelihood a consumer will have a higher than anticipated losses. These are similar to what lenders use to predictrepparttar 136906 reliability of an applicant repaying a loan.

Insurance companies use many factors in determining your credit score. Here are some examples of those factors:

. Public records: bankruptcy, collections, foreclosures, liens, charge-offs, etc. . Past payment history:repparttar 136907 number and frequency of late payments andrepparttar 136908 days betweenrepparttar 136909 due date and late payment date. . Length of credit history:repparttar 136910 amount of time you have been inrepparttar 136911 credit system. . Inquiries for credit:repparttar 136912 number of times you have recently applied for new credit, including mortgage loans, utility accounts, and credit card accounts. . Number of open lines of credit:repparttar 136913 number of credit cards, whether you use them or not. . Type of credit in use: major credit cards, store credit cards, finance company loans, etc. . Unused credit: how much you owe compared to how much credit is available to you.

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