You may wonder “What the heck does my credit score have to do with the price of my insurance?” You are definitely not the only one who asks this question each time they need to purchase or renew an insurance policy. Basically, your credit score offers the insurance provider a look at your responsibility. If you have a great credit score, it shows that you pay your bills on time and you are financially responsible. Companies use this to give customers a great deal and lets people with a less than great credit score work their way into a better premium.
When shopping for insurance, you need to take into consideration what your credit score looks like. If you have had some financial difficulties, you could end up paying more for your policy. One way to get a better deal is to shop around. Don't take the first quote you get. You can compare several different rates and find a insurance policy you can afford.
Many people disagree with the practice of using a credit score to determine responsibility on the road. Just because you lost your job does not mean you drive like a maniac. Sometimes you can talk with the insurance provider and explain your circumstances. You may also be able to use a device to prove you are a responsible driver and earn a discount on your premium. Even if you are upset by a higher premium, you should not go without insurance.
Overall, the main reason your credit score affects your insurance premium is companies need a way to judge your dependability to make your payments on time. People who let their insurance lapse and are then involved in an accident make the rates go up for everyone. The best way to make sure you get a great deal on your insurance premium is to pay your bills on time and try to keep your debt to a minimum.
Do you Need Full Insurance Coverage on High Mileage Cars? What are my options?
Car owners with high mileage automobiles are often torn on how to proceed with their coverage. Thanks to online comparison tools that allow owners to look at different insurance companies, consumer...
Read More →
Do Wood Burners Change your Home Insurance Premiums?
If you install a wood burner or wood stove in your home, your homeowners insurance policy may need to be updated to comply with state insurance regulations. Laws vary from state to state, and it wo...
Read More →
Does an Alarm System Help Lower My Homeowners Insurance Rates?
Homeowners insurance is often necessary. If you own a home, having proper insurance helps to protect you against all of the risks that can occur, such as fire, theft, or flooding, in some cases. Po...
Read More →