Lower Your Car Insurance Rates by Repairing Your Credit

Posted 3/5/2010 1:07:55 PM in Credit Repair
If you are like many people these days trying to make your paycheck go a little farther, you may have considered shopping the different car insurance companies to see if you can find a better rate. Judging by the number of Progressive and Geico ads on television these days, it's a safe bet that you aren't the only one.
Something to keep in mind while you are searching for that ideal car insurance premium is that, odds are, regardless of which car insurance company you end up with you will be offered a lower insurance premium if your credit is good. In fact, according to according to research firm Conning & Co, more than 90% of car insurance companies consider the information in your credit reports when putting together an insurance policy.

While the two may not seem linked, your driving ability and your credit score, statistics show that people with lower credit scores are more if an insurance risk. The Insurance Information Institute reports that drivers with bad credit file 40% more claims than drivers with good credit scores. The insurance industry being as numbers driven as it is, bakes these statistics into their risk calculations with the result being that if you have a lower credit score, they are going to charge you more for insurance.

On the other hand, having a good credit score makes you appear to be less of a risk so you can expect to pay less for insurance which is yet another reason why you should look into credit repair if your score could use some work.