03 Aug How Does My Credit Score Impact My Auto Insurance?
Your insurer looks at more than your car make and model when determining premiums.
When it comes to your insurance, insurers will look at a variety of factors to define your monthly rate. Everything from your vehicle’s make, model, safety, your location, age, gender, and credit score play a very big part in how much you’ll be charged for insurance coverage over time.
While you may be thinking that your credit score of just three numbers has nothing to do with how you drive, however, there’s a bigger correlation that you may think.
As it turns out, there is a statistical correlation between your credit score and how likely you are to file a claim. Insurers use this relationship as the reason for supplying those with bad credit a higher premium rate. If your credit score is lower than it should be, you could be paying more for auto insurance than you need to.
Fortunately, there are ways to better your credit!
- Check your credit report to scan it for errors.
- Set up payment reminders so that all of your payments are on time. If you don’t have it set up already, activate your automatic payments through your credit card and loan providers.
- Reduce the amount of debt that you owe by paying what you owe and stop using your credit card altogether.
- Track your credit report for anomalies and correct any mistakes pronto.
While you reassess your credit score, allow North Central Insurance to take care of your insurance coverages so that you’re not paying more than what you need. Contact us in Elk River, Minnesota to get started!