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Do Auto Insurance Companies in Alaska Check My Credit Report?

Reader’s Question:

I was applying for auto insurance in Alaska and I was surprised to find out that my credit history actually affects my auto insurance premiums. Why is this so? What has credit reports actually have to do with auto insurance?

Isabelle

Anchorage, AK

It may not make sense to you or to any of us to connect credit report, particularly bad credits with higher auto insurance premiums. But, this is a general precaution insurers in Alaska undertake, believing that there is correlation between bad credit and auto insurance. Chances are, if you were not disciplined enough to manage your credits well, you may also be a reckless driver on the road, thereby increasing the risk of insuring your vehicle and you, and therefore ultimately resulting to higher auto insurance premiums. This is why it is ideal to maintain good credit reports so that your records will be clean whenever someone asks for it.

To fix your bad credit, you will have to increase the amount of money you direct to your creditors. A lot of discipline and some sacrifices is necessary but the reward will be fulfilling so there’s something to look forward to. The other option will be to look for a credit consolidation company who will be willing to fix your bad credit for you. Now it does not end there, you have to make sure that you are now paying the consolidation company regularly.