How does your credit history affect insurance costs?

Establishing a solid credit history can significantly reduce insurance costs. In many situations, your credit score is used to determine your ability to meet financial obligations and goes up or down based on several factors. Payment history, account balances, and credit inquiries can all affect your credit score, and in turn affect your ability to get adequate insurance coverage at affordable rates. A proven ability to manage money and meet financial obligations can help you secure low insurance rates for homeowners insurance, auto, motorcycle or boat policies, commercial coverage and even health and life insurance.

What you need to know to maintain a healthy credit history:

• Make payments on time and avoid surpassing credit limits. Paying more than the minimum amount due on your credit cards can also contribute to improving your credit score.


• Keep credit card balances low and resist accepting pre-approved card offers and retail cards. Having no more than 3 or 4 credit cards with low balances establishes your ability to manage money and can help reduce insurance rates.


• Review your credit report for mistakes. You are entitled to a free credit report once a year: visit annualcreditreport.com to order a free credit report. Cleaning up your credit history will often result in more affordable insurance premiums.
  

• Call 866-946-QUOTE (866-946-7868) to speak to one of our insurance agents
• Complete our online quote form and one of our knowledgeable insurance agents will contact you to discuss your credit score and available insurance policy options.