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Will my credit score influence my insurance rates in South Florida?

Feb 01, 2023

Most people know that age, health, and driving record influence their insurance rates and coverage. Some may not be aware that insurance companies also consider credit scores.

Insurance companies use credit scores to indicate how likely a person is to make their insurance payments on time and in full. Those with higher credit scores are seen as less risky and are likely to receive lower rates and better coverage. There is a common belief that getting insurance is difficult if you have a bad credit score, but is this true? Well, the answer is pretty simple: your credit score will usually impact your insurance eligibility.

 In this article, we are going to discuss how credit affects your rates and how Del Toro Insurance in South Florida is helping people with poor credit get the coverage they need by examining how credit scores and insurance are related.

Insurance Rates and the Impact of a Credit Score

Several factors determine insurance company rates and coverage, including credit scores. As a result, they offer better rates to people with higher credit scores because they believe they are more financially stable and less likely to file claims. Insurance companies can also use credit scores to determine overall risk, like whether someone will submit a fraudulent claim.

According to studies, there is a correlation between insurance rates and credit scores. Poor credit scores, for instance, have increased car insurance costs by 91% compared to those with excellent credit scores. A study conducted in 2020 discovered that homeowners with less than perfect credit scores paid an average of 29% more for home insurance. 

It varies from state to state, but some states restrict how insurance companies can use credit scores. Some states cap the amount they can charge, others will not allow companies to adjust premiums at all, while other states just simply stay out of it altogether.

The Challenge of Getting Insurance with Bad Credit

 It may be difficult for individuals with bad credit to get the insurance they need. Those that do, may find their rates are much higher than expected. Having bad credit can make it difficult to find affordable coverage and may even prevent them from finding coverage at all.

Insurance companies in South Florida often use credit scores to determine a person’s overall risk when determining if they can get insurance with their bad credit. 

Some companies may require people with imperfect credit to make higher deposits or down payments. Even if they find an insurer willing to insure them, those with bad credit may have difficulty affording the coverage they need. Insurance agencies are under no obligation to notify you about the credit score they have calculated for you when trying to get insurance. Insurance companies can run your credit score across different platforms and base your rate on the lowest score to determine if they will insure you, and how much they will charge you for your premium. 

Dealing with Unfair Rates from Insurance Companies in South Florida

There are steps you can take if you feel your credit score is causing you to be charged unfairly high insurance rates.

  1. You should review your credit report regularly to ensure it contains accurate and current information. Credit bureaus should be contacted if there are any errors.
  2. Get quotes from various insurance companies and shop around. Bad credit individuals may find some companies more willing to offer fair rates.
  3. If you have bad credit, you may qualify for an exception to your insurance company’s normal underwriting guidelines.
  4. The most effective way to find the right coverage for you is to work with an insurance agent who has experience with your type of coverage like Del Toro Insurance in South Florida.
  5. Complain to your state’s insurance commissioner if you believe an insurance company is engaging in discriminatory pricing.
  6. If you’re having trouble navigating the process of fighting unfair pricing and discrimination, you can contact Legal Aid or Consumer Advocacy Organizations.

If you want to avoid having to deal with unfair rates due to your credit, reach out to Del Toro Insurance. They provide the BEST rates, with or without a perfect credit score! 

Let’s Talk Credit Exceptions

A credit score exception may be appropriate, depending on your specific situation. An insurance company offers coverage to an individual with a poor credit score if they make an exception to their normal underwriting guidelines. If your credit score is not up to their standards, the insurance company may be willing to overlook it and provide you with coverage anyway.

An exception for credit score may be a viable option for people with bad credit and difficulty finding affordable insurance. Even if insurance companies offer a credit score exception, it’s imperative to keep in mind that insurance companies generally charge higher rates for people with poor credit. The cost of your credit score will still be higher than that of someone with a stellar credit score.

Credit score exceptions may not be available with all insurance companies, and they may be more challenging to find. That’s why Del Toro Insurance is the go to insurance company for those with less optimal credit. They have years of experience helping those with their insurance needs regardless of their credit scores.

Working with an experienced insurance agent who deals with individuals with less than perfect credit is a good idea when applying for a credit score exception. By working with them, they will help you understand your options and find the appropriate coverage for your needs.

An exception to your credit score may be a feasible option if you have poor credit and are having trouble finding affordable insurance. An insurance agent with experience working with individuals with problematic credit can help you navigate this option, and find the most appropriate coverage for your needs.

Providing South Floridians with the Best Coverage

In South Florida, Del Toro Insurance knows that individuals with bad credit should not be denied coverage. Their licensed insurance agents specialize in helping people with bad credit find the affordable coverage they need.

Del Toro Insurance works with a wide range of insurance carriers to help those with bad credit. The company can then find the best rates and coverage options for its clients, regardless of their credit history.

You can get insurance from Del Toro even if you have bad credit. They work with individuals with damaged credit in Florida to help them get the coverage they need at an affordable price. Their experienced agents will help you find the best rates and coverage for the type of insurance you’re looking for. It’s like a private detective, combing through the evidence and resources to find answers for their client. With careful investigation and the right resources, the detective can crack the case. It’s the same with Del Toro Insurance. They have the right resources and will work to get you the best policy and premium you’re looking for. Get more information about your coverage options by contacting them today.

 The Bottom Line

Insurance rates and coverage can be significantly affected by credit scores. People with poor credit scores may be charged higher insurance rates by many insurance companies based on their credit scores. It should be noted that state regulations vary, and not all states allow rates to be determined based on credit scores.

It can be challenging to get insurance with damaged credit. Poor credit can make it difficult for people to afford insurance due to high rates, higher deposits, and higher down payments required by insurance companies. Switching to a better insurance company may be nearly impossible for most, but In South Florida, Del Toro Insurance will work with your poor credit and find the policy that’s right for you. It’s smart to work with an experienced insurance agent who can help you understand your options and find the right coverage for your needs. Call Del Toro Insurance for a free quote today!

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