Car Insurance – Your Credit Score Can Cost You

Car Insurance – Your Credit Score Can Cost You

Buying a new car or looking for a different car insurance company. Today’s economy is different and many consumers who have held great credit scores are experiencing lower scores from reduced credit limits, closed accounts and many factors beyond simply the timely payment of bills every month.

Many car insurance companies actually factor in your credit score when calculating the cost of your car insurance premiums so its very wise to (a) understand what a credit score is and (b) pull a copy of your credit report before contacting any potential insurance company.

Not all insurance companies will grade your premiums using this factor however since some do its important you shop around and talk to multiple insurance agents before settling in on a policy. Remember, if you do not compare policy premiums how will you ever know if your rates are within, above or below market.

Car insurance companies try to find a balance between risk and premiums. Factors such as the age of a driver, type of car, place of residence, driving record and yes – even the color of a vehicle all factor in to calculating auto insurance premiums. Your credit is simply another risk factor used for applying a risk level to you as a driver.

The best place to shop for auto insurance is online. Almost every insurance company is simply a click away and provide online tools to request quotes, find local agents and contact information should you decide to speak with them direct.

Compare Auto Insurance Quotes from local providers today.