Is Your Credit Rating Affecting Your Insurance Premium?

Your Credit Rating May Cost You Money

We all know that our credit rating can affect how much interest we pay on car loans and credit cards, but did you know that your credit rating may also be affecting how much you pay for your insurance? Believe it or not, how your credit report looks can indeed affect your insurance premiums.

No One Said Life’s Fair

Okay, it may not be fair, it may not even make sense, but it’s a fact. A good number of insurance companies are now using people’s credit ratings as a factor in determining how much of an insurance premium they should pay. The worse your credit is, the higher your insurance premium may be. How did the insurance companies determine that people with tarnished credit are a higher insurance risk? Beats the heck out of me, but that’s the way it goes folks.

What Can You Do?

If you have perfect credit, then you really don’t need to worry about it. However, if your credit has some bumps and bruises, then you’re going to want to make sure that your credit isn’t costing you money. When you’re applying for insurance, see if the company you’re applying with uses your credit rating as a determining factor. If it’s something that they weigh heavily, you’re going to want to take your business elsewhere.