Credit and Your Insurance Premiums

In today’s insurance market, you can not underestimate the effect your credit score has on your insurance rates. In Ohio, that is the state I know, almost all of the insurance companies base their premiums, to some degree on credit. As an independent insurance agent, I also get to see how much credit is considered with some companies. Here are a few interesting facts about your credit score and your insurance:

• I write for companies that give a 40% – 55% discount on the base premium for a very good credit score.
• Insurance companies have decided to include credit since most rating is done on line and can be pulled into the factors to determine a rate.
• Different insurance companies look at credit differently, some weigh it as the number one factor and some only take it into consideration.
• For youthful drivers, because the parent has good credit, could save you $1000′s each year because of the credit score.
• Insurance rating systems do not pull a “credit score” it is the insurance score and insurance history can influence the score as well.
• The insurance score does not show as a hit on your credit report like shopping for an auto loan will.
• Never let you insurance lapse, even if you are canceling to buy another policy, this shows as a non-paid bill on your credit report.

I hope you find this information useful. Most consumers I speak with do not realize this is a part of their final premium rate for their auto and homeowners insurance.

Alice Kamer is an insurance agent for Mark Matthews and Associates in Pickerington Ohio. If you would like to know more about Alice or the agency,go to http://www.mma4.net visit Alice’s blog at akinsurance@blogspot.com or e-mail me at alicek@mma4.net. Thank you.