As far as your auto insurance goes, there are several different factors that come into play when determining how much you will pay. Some of them make a lot of sense, and others won’t so much. Understanding what factors are used when determining your premiums can help you ensure you are getting the best auto insurance rates that are available to you. One factor that can impact your rates more than most people would like is your credit score. Signet Insurance Group is here to talk about why your credit score matters as far as auto insurance goes and other factors that determine how much you will pay.
What Factors Determine How Much You Pay for Your Auto Insurance?
As mentioned above, there are several considerations made when an auto insurance company determines how much you will pay for your auto insurance. Here are some of the factors that they look at:
– Driving record
– Age & driving experience
– Claims history
– Geographic location
– Credit score
– Make & model of vehicle
Why Does Credit Score Matter for Car Insurance?
It might seem like your credit score and what you pay for your auto insurance should be two entirely different things, right? Well, insurance companies have found that it can be a good determining factor to help mitigate losses for them. In today’s market, almost 92% of insurance companies will use a credit score to help them determine insurance rates. Studies have shown that people who have a lower credit score are more likely to file a claim with their insurance company. Therefore, if you have a higher credit score, you won’t pay nearly as much for your coverage.
Ways to Improve Your Credit Score
here are several ways that someone can improve their credit score. Here are some tips to help you:
– Build Your Credit: If don’t have much credit history, it will work against you and give you a lower credit score. Using a secure credit card or credit-builder loans can help you build up your credit profile and higher your score.
– Pay on Time: If you have payments that are due, make sure you are paying them on time. Anytime you are late making payments to your accounts, they report it to the credit bureau and your score is dinged.
– Pay Down Balances: If you have a high credit utilization rate, paying down your revolving accounts will help lower your score.
– Don’t Open Accounts: If you have several credit cards, don’t open anymore of them. This can hurt your credit rather than help it.
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If you’re looking for a good rate on your auto insurance, you can turn to Signet Insurance Group to help you get the best price possible. We will do all the work so that you don’t have to worry about it. We will do the shopping for you. Call us today!
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