Car insurance is directly affected by credit score

Car insurance? Credit Score?


Did you know that your car insurance is directly affected by credit score? It’s hard to compare your rates to those of your friends and neighbors because you have no idea how their credit score is affecting their rate; it could be better or worse than your own.

Insurance companies starting using credit to help determine rates years ago. Data showed that people with higher credit scores tend to file fewer claims than those with lower credit scores, so they began using credit scores as part of their rating algorithms.

Keeping your credit in good standing will definitely save you money when you shop for better rates on car insurance. If you do not know your credit score you can visit to obtain a free copy of your credit. Reviewing your credit is a good habit to get into. It is estimated that about 70% of credit reports have errors on them so you will want to check yours for errors and get those errors corrected.

It is good to talk to your agent about your credit, especially if your credit has improved substantially since you purchased your last insurance policy. An independent agent like Insurance Professionals of Arizona can shop your insurance again once your credit has improved and likely find you a better rate.

When is the last time you shopped your car insurance for lower rates? IPA has a proven track record of helping people lower their car insurance rates, especially car insurance in Mesa AZ. Call today for your free no-obligation quote: 480-981-6338.

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