You already know that your credit score affects your ability to get loans, credit cards and other financial aspects of your life. But did you know your credit score can also affect your insurance premiums? Your Elizabeth area Chevrolet dealer has three things you should know about your insurance credit scores so you can hopefully save money on your auto insurance premiums.
1. Insurance scores consider past financial history, including debt and payments. A large number of credit cards and balances will count against you when you get auto insurance in that you will likely pay higher premiums.
2. Almost all states allow insurance companies to consider credit scores. Hawaii is the only state that does not allow insurance companies to consider credit history when determining auto insurance premiums.
3. Recent activity is used more than old activity. If you have a recent history of paying your bills on time and using your credit wisely, that will carry more weight than your old credit history. It shows that you have “turned over a new leaf” and are probably less likely to file a claim with the insurance company for an auto accident.
Saving money on insurance these days is essential. And now that you know your credit history has an effect on your premiums, you can work to fix it.
Tags: chevrolet dealer, insurance premiums, new cars, new jersey