Yes, Geico uses your credit score as a factor in determining your car insurance rates, as do most major insurers. However, credit checks performed by auto insurers don't harm your credit rating and are only done in states where it's legal for your credit rating to affect your rates. Car insurance costs and requirements vary in Florida and Georgia because states have different laws and auto insurance providers. While Georgia's auto insurance laws require drivers to obtain liability coverage for property damage and bodily injury per person and accident.
Due to a variety of factors, including specific minimum coverage requirements, population density, and frequency of accidents, Florida's car insurance rates are much more expensive than in other states, such as Georgia. If you're thinking of moving from Florida to Georgia, or vice versa, you should consider the different car insurance coverage requirements in each state. Geico policyholders get a discount on the price of the class, and then the course administrators directly notify Geico to apply the policy discount after the course ends. MoneyGeek's Florida car insurance calculator or Georgia car insurance calculator will quickly calculate how much a policy costs in each state.
While most policies last a minimum of six months, there are ways to get temporary car insurance in Florida or temporary car insurance in Georgia if you're only in the state for a short period. Many auto insurers use credit data to determine their premiums because there is a proven correlation between a lower credit score and a greater likelihood of filing a car insurance claim. An important difference is that Florida requires personal injury protection (PIP) in its minimum auto insurance policies, while Georgia requires liability for bodily injury. Florida also has more roads, accidents, and natural disasters than Georgia, contributing to the rising cost of car insurance.
MoneyGeek answered the most frequently asked question to help you better understand car insurance in Florida. Because your credit history is correlated with your likelihood of filing an insurance claim, Geico uses your credit data to calculate your premium in states where it's legal. Keep in mind that your credit score isn't the only factor used to determine your car insurance rates. Expensive cars, sports cars and cars with high theft rates are considered to be riskier to insure than cheaper and more practical vehicles.
For example, Florida auto insurance policies are more expensive because it's a no-fault state, which means that regardless of who caused the accident, drivers file claims with their own auto insurance companies. MoneyGeek looked at the costs of finding the cheapest companies in these two states, and the difference between Florida's auto insurance laws and requirements and car insurance companies mainly takes into account factors such as your age, driving history, and make and model of your car.