Q: What does my credit rating have to do with my auto insurance?
Bradley Hensley: All major car insurance companies look at your credit score, and your credit score will have a huge factor on how much you pay for insurance. An incorrect or outdated credit score may mean you’re paying more for your car insurance that you need to be?
Q: Does my insurance company know what my current rating is?
BH: Not likely. Credit reports are a bit costly to run so its typical for insurance companies to only run the credit scores of their customers about every 3 years. So if you’ve worked to reduce your rating, to fix an erroneous credit rating, or have had any number of life changes, you could be able to pay less.
Q: What sorts of life-changing events affect my credit score?
BH: Many big life events can make a big impact on your score, either to go up or down.
- Did you buy a home?
- Did you get married?
- Did you start a business?
Any of these situations or others that impact your finances and/or ability to pay bills could mean your score is much different than when you (or your insurance company) last checked.
Q: How do I get this fixed?
BH: You just need to ask. Call me and let me know why you think your credit score may have improved and I can make sure your score is checked again in time for you to start seeing a reduction on your insurance bill.