Your Credit Score & Your Car Insurance Costs

It's certainly no secret today that your credit score goes with you just
about everywhere when it comes to purchasing something on time. However, if
you think your credit score only comes into play when you are applying for a
loan you need to re-think that.

When it comes to car insurance, many insurance companies will also take your
credit score into consideration when it comes to determining the cost of
your coverage or even coverage at all if you are applying for insurance.

Even with a spotless driving record, this can be the case.

You see, for insurance companies, it's all about statistics and risk
factors. Many insurance companies believe that mediocre to poor credit
ratings equate to higher insurance risks.

So, if you're not the best at getting your credit card payments in the mail
on time you may want to stop and think about changing your payment habits
and make more of an effort to improve your payment track record. Whether
this is true at all or not, almost all auto insurers use your credit score
in the mix to some degree when determining your premium.

Knowing this, makes it even more important for you to know exactly what your
credit score is and why it is what it is. In other words, even if you
believe you've never been late on any payment, credit reporting companies
are far from flawless.
There could be mistakes or even misrepresentations on your report that could
cause to have your insurance rated (higher
bracket) or even denied.

So, take a few minutes (and you can do very easily online) and get your
credit report. Or check out your FICO (Fair, Isaacs &
Co) score; which is what insurance companies use to factor your credit
rating into the cost.

A driver with bad credit is going to pay more for their insurance than those
with good credit.

If you do have bullet proof credit, this is all the more reason for you to
shop your insurance around. You may find an insurance company that offers
bigger discounts for A+ credit ratings.

About The Author: Jeff Neilan's car dealer experience offers insightful car
buying tips that save you time and money. Be sure to visit
http://www.acarbuyersguide.com for car insurance tips, financing costs, &
more.