Credit History and Insurance Car Insurance Manditory Insurance

Did you know that your credit score will determine your car insurance rate? If not you were not alone. Credit reports are now used to make consumers pay higher premiums. If you have a good credit rating you may get to pay less.

Fair no longer matters, with all Americans who are now paying billions to companies that will retain more of our income than most of us are able to save. Simply put your credit score is so important now if you do not diligently guard it you loose big time money. Unfortunately, the costs are rising and soon many of us may give up our motor vehicles to regain our financial freedom from over zealous insurance companies.

Sadly, for most Americans we bought into the all too frequent fear of the under-insured or uninsured driver. We were told that statistics were showing fatalities and injuries from these under-insured or uninsured drivers were costing millions. These lies were spun to create and give free rein to the insurance companies that were not making the amounts they wanted. Just like the bad home loans someone saw a way to make a few filthy rich. It is hard to prove we were mislead. Even harder is to convince anyone who has lost a family member to some one who had no car insurance. Some families filed suit in the hopes of recouping financially to ease their pain and suffering. But they lost and many of us have been sold on the idea that money will ease our grief.

We have a massive problem where insurance companies can rate you based on your credit score. Every one here in this nation just sat back and allowed the changes without so much as one single day of protest., Precedence has now been set and more companies are moving to this kind of modality. Can you see the day when fast food will cost twenty dollars for a double cheese burger if your score is below 500? We may laugh at this thought but we all laughed when the threat of mandatory insurance was placed on the government table. We are no longer laughing.

This all seems crazy until you start looking at what  the actual cost is for insurance. In six months you can buy a used car for around $800.00. After five years you could have a nice down payment for a home at a rate of $1800 a year you can save $9000.00. When we are looking at a retirement nest egg this amount is huge. In ten years you have just paid out $18,000.00. Multiply this amount times all of those in this nation 310,300,000, you get $5,585,400,000,000.00. Then multiply this number by all the insurance companies in America. We just cut our national deficit in half if the math is correct. Feel free to calculate the numbers.

As long as we do not care about our credit report numbers we will continue to pay high fees for insurance. This nation can not possibly continue using this system. It will be impossible to cover the costs over the next twenty years.  As more drivers opt out of driving themselves by taking buses rail cars and bicycles we will see changes slowly. Due to the use of our credit scores we all need to demand that insurance companies stop using this system to give us rates. We may be mandated by law to carry insurance we should not have our credit reports used against us as part of this requirement. Demand better from your politicians.