Your credit can and do affect your insurance premium
Finding the best car / truck insurance
Finding the best car insurance is hard enough. What can be done from keeping your premiums from rising? This can be very frustrating and difficult especially when you are unaware of HOW it all works.
Here are about 12 ways the industry works, with tips to help you save:
If you have good credit, you'll pay less. It is a fact that almost all insurers (including the top five) will pull your credit report. Why? Because studies have shown a direct correlation between a person's credit report and score and the likelihood that a person will file a claim, as unfair as this may seem it is the truth. The Insurers feel that if you pay your bills in a timely fashion and have had the same debts and credit accounts for an extended amount of time, then you're more stable than someone who has a habit of late pays and frequently opens and closes various accounts. With this information they will create your "insurance risk score," and so is one factor that will determine your auto-insurance rate.
You might not know this but your insurance-risk score is not readily available to you, however this may be very similar to your credit score. After checking and you believe that you have unusual credit activity, it is advised that you wait a month for it to return to normal before buying auto insurance. Always check your credit history and if you think it is shaky, clean it up as soon as you can.
Did you know that your car model affects your premium? Well it does! The details and numbers are not given to you from your insurer; in fact, you may not be able to get these at all but it's good to know that yes even things that you DON'T know about can indeed harm you. It is true that the auto insurers have a rating system for every car make and model, past and presnt. Many insurers use a system devised by the Insurance Services Office, it starts with the cost of the vehicle and then factors in safety and even theft data gathered from their algorithm. The vehicle Cars, trucks motorcycles and others are given a rating from a scale of 1 to 27, and the higher the number, the higher your premium will be. So when you are searching for the best car insurance, keep these tips in mind the main factor is to check your credit FIRST.