Could Your Credit Score Be Affecting Your Auto Insurance Policy?

There are certain things you need to have in order before you apply for an Indiana Auto Insurance Policy. You need a valid driver’s license, your social security number, specifics about the car or cars you want to insure, and your bank information. That last item is more important than you may realize, as an insurance company could use it to pull your credit score. Could your credit score be affecting your auto insurance policy?

Want the Best Car Insurance Rate? Pay Attention to Your Credit Score.

If you have a high credit score, you will be thrilled to know that insurers will reward you with car insurance premiums as much as 60% lower than applicants with poor credit ratings. If your credit score isn’t very good, though, the news isn’t good. Your premium could, conceivably, be more than double that of credit-savvy consumers. Fair or not, the bottom line is this: If you want to lower your auto insurance premiums, find out what your credit score is, pull your credit report an analyze it carefully, and contest any inaccuracies right away. If your credit score isn’t good, take steps to improve it by paying your bills on time and/or securing new loans or credit cards and making on-time payments.

The Reason Insurers are Interested in Credit Scores

Studies have shown that people with lower credit scores submit more insurance claims, and that those claims amount to higher dollar amounts than claims submitted by policyholders with good credit. The Federal Trade Commission echoes this fact on its website. Whether you agree with this or not, there is no disputing the fact that it’s in your best interest to strive for a favorable credit score.

If you are in the market for auto insurance now, or expect to be in the future, call us at Walker & Associates Insurance, (888) 760-7292. Even if you have less than stellar credit, we will work to get you the best possible rate on car insurance.