Did you know your credit score plays a role in what you are charged for your home and auto insurance premiums? Like it or not, it has become an important factor in how insurance companies determine risk. You may be asking (as many many many many people have asked me), “Why the heck should my credit have anything to do with my insurance!!!???)
It is a proven statistical fact, that people with better credit file fewer claims. It is as simple as that. It goes along the same lines as, people with more moving violations, cause more accidents. Or people who live more than five miles from a reporting fire station have larger claims than those who live within five miles of a station. There are dozens of factors which determine a rate.
I have seen a home with $150,000 worth of coverage cost a homeowner $700 a year, and the same home with someone with better credit cost $400 per year and the only difference is their credit. The swings can be that dramatic.
What I have been doing for my clients, is running their credit score again. If it has improved since they first purchased insurance with me, their rates could go down. If their score is worse…. IT WON’T GO UP (with Farmers). It is a very simple process where I grab a signature on a form and submit it to my service center and in a few days we know. So there you go. Call your agent, or imaginary character who handles your insurance and see if that will help you out!
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