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Posted in Auto Insurance
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Question By
eleanauto

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How can I get my auto score up and insurance price down?
I have been licensed for only about 3 years and looking to get a car. However, even when I quote the most basic and cheap car that offers a lease for $150/month, my insurance quote is $400+/month depending on the insurance company. My credit rating is excellent but the auto insurance score is fair even though I never had any violations, tickets, claims... Nobody can give me a clear answer as to why my insurance rate is so high and only suggest to ask somebody to sign me on their policy but this is not an option in my case. I'm not under 25 so this may not be an issue. Any ideas as to how can I get my auto score up and insurance price down?

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Do you currently have homeowners or renters insurance?  If so, I'm assuming you checked with them for an auto policy first?  If not, I'd try that first.  Here's what I found about credit & auto insurance from www.credit.about.com:

The credit score used by insurance companies is different from the one used by banks. Instead, insurance companies use an insurance credit score that’s specific to their industry. You can purchase a generic version of your insurance credit score from TrueCredit.com, a subsidiary of TransUnion. TransUnion is one of the three major credit bureaus.

According to a disclaimer on the TrueCredit website, state information is used along with your credit information to calculate your insurance credit score.

Free Credit Report for High Insurance Rates

If an insurance company gives you a higher rate based on information in your credit report, they are required by the Fair Credit Reporting Act to notify you of this fact. They must include the reason your rate is higher, for example, “You have one or more late payments within the past 24 months.”

You are also entitled to a free copy of the credit report used in the decision. You will have 60 days to obtain this credit report. If your insurance quote was based on inaccurate information in your credit report, you can make a credit report dispute with the credit bureau and request a new quote from the insurance company.

Hope this helps!

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Thank you Addison. Unfortunately it wasn't the official quote, just something I tried to do online. I actually never heard of auto insurance score up until yesterday and just assumed that might be an issue since I never held any policies. But now I'll try to sign up to TrueCredit , may be get a renters insurance since I don't have it either and see what happens. Hopefully it effect me positively cause I really need to get a car by this summer and paying $400+ for insurance wouldn't be fair. Thanks for your advice!

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It is illegal for them to charge a high rate and not give you an answer (clear answer) as to why.  Did they say if the high rate was due to your credit report?  If so, they must notify you of this fact in writing.  Go to www.credit.about.com and type in "credit and auto insurance" in the search box, some good info there.  Good luck!

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