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You’ll enjoy the benefit of wide insurance options at cheap rates due to your good credit. But you can still look for ways to save on top of that.
Good credit means you’ll have many companies who’d be delighted to fill your insurance needs. Choices to consider include:
Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.
Companies may already cut you a better deal on your premium than drivers with poor or no credit. But you can still find other money-saving methods too.
Making good credit even better can save you money on insurance in the long run. With good credit, you’ll likely pay around $1,300 per year, which is the average insurance rate.
By comparison, drivers with fair credit often pay 17% more, or $1,521 per year. Those with poor credit pay as much as $1,846 per year, which is $500 more than those with higher scores. However, if you raise your credit score, you might just achieve a premium that’s below $1,300.
Although using credit to determine insurance rates can be controversial, studies show that it’s an accurate indicator of a driver’s risk. Those who hold higher credit scores tend to make fewer accident claims.
Not all states allow credit-based insurance checks, including California, Hawaii and Massachusetts. Companies also use other demographic info like your driving record and the type of vehicle as determining factors as well.
You’ll know insurers are looking up your credit score when they ask for permission to do so during the quoting process. Companies will request personal information to check the score, such as your address or Social Security number.
Most insurance companies use a soft pull to check your credit, which means it’ll have no negative effect on your score. You’ll still see the insurance check on your personal credit history for recordkeeping purposes.
Good credit opens up many options for insurance providers so that you can choose from the best. Plus, improving your credit score could help you score an even lower premium.
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