Pat Goss' Tips & Expert Advice

Credit History Counts

You already know that your credit report is checked by potential lenders every time you apply for a new account. Did you know that more and more insurance companies are starting to consult credit scores when an application comes in for a new auto insurance policy? Although many people would argue that credit scores have nothing to do with a person's likelihood to file a claim, insurance companies are using credit scores as a way to calculate car insurance premiums, nonetheless. In most cases, the higher the credit score the lower the monthly auto insurance policy premium will be. Conversely, the lower the credit score the higher the monthly auto insurance policy premium will be. This is good information to have, because if you have less-than perfect credit and apply for car insurance coverage you will want to be prepared for a higher proposed premium than you expected, even if you have never made a single car insurance claim in your life. It's just one more reason to try to keep your credit score high and to aggressively shop around for car insurance before settling on a particular company.