Cheapest Car Insurance Often Eludes Those with Poor Credit

Whether they like it or not, consumers in many states may find themselves unable to secure the cheapest car insurance if their credit is less than average.

This week, WBAL-TV in Baltimore ran an investigative story where a local insurance professional described how even people with safe driving records can find themselves paying higher premiums because of things on their credit record.

The report cited statistics from the group Consumers' Checkbook showing that bad credit can cost an individual up to $500 extra each year in higher premiums.

One industry organization that defends the practice, the Property Casualty Insurers Association of America, maintains that people with poor credit are more likely to file claims in the long run. Opponents compare the practice to the now-illegal "red lining" policies of the 1960s where people were charged more based on the neighborhoods they lived in.

While the issue continues to receive scrutiny from various states, the best option many drivers have is to be alert and to shop around. Consumers can often find the cheapest car insurance by carefully comparing companies and by choosing money-saving steps like higher deductibles.

For more about auto insurance rates that won't max out your credit card, visit InsureMe.com today.

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