Denied Car Insurance Coverage in Alaska
Reader’s Question:
I have been denied car insurance coverage here in Anchorage, Alaska because of my credit history, what can I do about that?
Beck
Anchorage, AK
The federal Fair Credit Reporting Act would let you request for a copy of your credit report for free from the agency used by the insurer if you have been denied car insurance coverage in Anchorage, Alaska because of your credit history. You may very well contest the information given to you if you know that the credit agency is mistaken. But if you have been rejected for coverage and you know that your credit rating has an effect on your ability to obtain car insurance, here are a few tips:
–You have to clean up your credit right away by paying your bills when they are due, avoid credit cards with high interest and don’t spend further than your funds.
–You may be an unknown quantity to the insurance providers if you lack history so go ahead and get some credit. Use your credit on a regular basis but you have to make sure that you pay them on time.
–At least once per annum, obtain copies of your credit report from the top three major credit agencies. Be certain that all of the details from each report are accurate. You can challenge any mistakes with both the credit agencies involved and the creditors.
–Don’t forget to shop around because premiums can be different for the same coverage.
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.