Car Insurance Birmingham Alabama AL
Reader’s Question:
My car insurance premium was raised once by an auto car insurer in Birmingham, Alabama because of a bad credit. In my opinion though, I do not think it is relevant to do that. I do not even think that can be lawful in Birmingham, AL.
Gary
Birmingham AL
Different people will have different views on this debate on car insurance premium with relevance to credit standing.
The pro people say that basing car insurance rates on credit allows car insurance companies in Birmingham, Alabama AL to more accurately predict risk, making rates lower for everyone. The anti people say that bad credit does not make someone a bad driver in Alabama. Even if many people with bad credit are bad drivers, it doesn’t mean that good drivers with credit problems should be punished as well.
However, what’s interesting to know is that most people agree that car insurers should notify car insurance policyholders should car insurance rates increase due to a bad credit. After all, the Fair Credit Reporting Act (FCRA) clearly stipulates that that people have the legal right to be notified when they are declined for credit, employment, or insurance, on the basis of their credit history. However, the same Act is unclear on whether or not car insurance companies have to notify you if your bad credit results in higher rates. This now leaves legislature issues which we need to watch out for.
Since laws always come a long way to get perfect for everyone, the least you can do is to watch your credit so that you will keep your car insurance rates at level for now.
Tags: auto insurance, car insurance