Auto Insurance Leads Decatur Alabama AL

Reader’s Question:

An insurance company in Decatur, Alabama once raised my car insurance premium. They said it was because of a bad credit. I do not see the relevance of that action though and I do not think it is lawful to do that here in Decatur, AL.

Pete

Decatur AL

Diverse entities have contrasting opinion on the issue of car insurance premium in relation to credit standing. People who agree that car insurance premium and credit standing is one and the same thinks that looking into ones credit standing enables companies to foresee risk accurately, hence making rates lower in general. On the contrary, others believe that a bad credit standing does not make one a bad driver. And even if there are bad drivers with bad credit standing, it is still not fair to punish good drivers [with bad credit] alongside.
At any rate, car insurers are expected to notify car insurance policy holders should there be a need to raise insurance premium due to bad credit. It is clearly stated in the Fair Credit Reporting Act (FCRA) that all citizens have the legal right to be informed when application for credit, employment or insurance are declined based on credit history. On the other hand, the Act does not clarify whether car insurance companies are required to notify a person when due to bad credit standing; the car insurance premium is raised. In this case, legislature issues arise, which we need to be careful about.

For now, the least you can do is to make sure to keep your credit in good standing so you could keep your car insurance rate level since laws usually takes a long time to achieve perfection for everyone.

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