Tips to Boost Your Credit and Lower Your Insurance Premiums

Your insurance rates are determined by a variety of factors including your age, gender, driving record and past insurance claims.However, insurance companies have increasingly started using certain elements of your credit history, like payment history, outstanding debt, and credit history length, to come up with a credit-based insurance score. Studies have shown a strong connection between someone’s credit history and their future insurance loss potential. In order to reduce their risk, insurance agencies will use credit information to issue auto and home policies. This gives agencies another impartial way to assess the chances associated with a customer. Although this sounds daunting, many people can actually benefit from the credit report/insurance rate connection. Here are a couple of tips to improve your credit and keep your premiums lower:

  • Obtain copy of your credit report to verify all the information is accurate. Make sure there aren’t any incorrect late payments and that the amounts owed for your open account are correct. If there are any errors dispute them with the credit bureau and the reporting agency.
  • Setup payment reminders through emails/text alerts, or automatic payments to avoid late payments.
  • Keep your credit card balances low. Don’t overuse your credit card and spend close to your credit limit.
  • Don’t close any credit cards. Keep them active by using cards for a reoccurring charge.

To get all your questions answered about how and why we use credit ratings and to learn how raising your credit score can benefit you in the long run talk to one our agents today!