If you are wondering why your car insurance rates are higher than your friends and co-workers are seeing, even though you’ve never had an accident, the answer may lie in your credit report. Insurance companies look at a variety of risk factors when they determine customers’ premiums. While your driving record plays a role in your rates, other aspects of your life are important too.
Insurance companies have found that the discipline a customer has in paying their bills is correlated to the likelihood of them being in an accident. Those who pay their bills on time and don’t take on more credit than they can handle are generally more responsible and are rewarded with lower rates for Auto Insurance Coverage in Tyrone PA. On the other hand, people who miss payments frequently and overextend their credit are considered to be a higher risk due to their supposed lack of self-control.
All three of the major credit reporting agencies will give you a free copy of your credit report every year. You can use this free report to review your credit standing and guide you toward the changes you need to make to improve your score. By establishing good financial habits, you can lower the cost of your Auto Insurance Coverage in Tyrone PA, and also receive offers for lower interest rates on credit cards, mortgages, and auto loans.
An experienced insurance agent, such as those at The Boyer Agency Tyrone, might be able to help you evaluate your credit and determine the reason your rates are higher than those your friends pay for similar coverage. While you are working to improve your credit, there may be other ways you can lower your car insurance premiums. For example, purchasing all of your insurance products from the same agency might entitle you to discounts on your coverage. Another way to save is by increasing your deductible slightly to assume some of the risk. With a higher deductible, you will have to pay more of the costs related to an accident. Since your insurer will have to pay less, they might reward you with lower rates.
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