Your Credit Score Is Affecting Your Car Insurance Rate
The application before you looks rather perfect. The page that requests any past violations of the driving codes is blank, the page for past at fault claims is blank, your car is well rounded and homey and a few years old, your in your early thirties…you should be getting the best car insurance rate out there, right? Until the end of the paperwork when your car insurance agent turns around and tells you what the cost of your six month premium would be, and your mouth drops open. How could your car insurance rate be so high when everything about you is so perfect?
There’s typically only one answer to this question: your credit history and score.
Wait, wait, wait. What, you might be wondering, does my credit have to do with my IL car insurance rate. I’m buying insurance, not the car itself. Why does that even matter?
It matters for a number of reasons. One simple to explain one would be that if you have a good credit score, then it tells car insurance companies that you are a reliable customer who will probably pay on time and maintain her responsibility with the company. If you have a bad credit score, it doesn’t send that message.
However, the part that really affects your car insurance rate is what the car insurance companies call your insurance risk score. This is determined using information from your credit report, usually pertaining to whether or not you pay your bills on time. If you have a bad insurance risk score, then you’re probably going to have a bad car insurance rate. The reason for this is that, according to research, policy holders who have bad credit file more claims, so they are considered to be more high risk than others.
If you aren’t sure whether or not you should be put into this category and get a high car insurance rate, order a copy of your credit report and check for inaccuracies and fake accounts. You can protect yourself from credit ruin and identity theft and also work toward a good IL car insurance rate.
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