Poor credit can affect auto premiums more than accidents!

A recent study showed poor credit can raise car insurance rates by 114% or more.    

There are many factors that enter into the computing of an insurance policy quote.  Particularly, home and auto insurance rates include credit factors in their rates.  The difference in a few credit score points can make a noticeable difference in a quoted insurance rate. There are benefits to increase your credit score even minimally. According to the report, drivers nationwide who improve their credit score just one tier could save an average of 17% a year.

A bad credit score can affect your auto insurance premium more than having a hit-and-run on your record reported in a recent study.  Even drivers with squeaky-clean records, they indicate, can see their rates double if their credit tanks.

Only a few states — California, Hawaii, Massachusetts, and Michigan — have banned insurance companies from using credit scores to price or deny insurance policies. According to the report, both state and federal legislators are considering further bans on credit rating used for insurance.

In the same way that having a poor credit score can ratchet rates upward, raising your credit score can lead to lower premiums.  On average nationwide, improving your credit score from “very poor” (300- 579) to “exceptional” (800- 850) would add up to a 114% savings — or around $1,537 a year.

For drivers with poor credit, it would be good practice to note the following tips to save as much as possible:

• Make small improvements to your credit where you can.

• Take advantage of any discounts (for staying accident free, taking defensive driving courses, etc.) your carrier offers to lower your premium.
• Even customers with decent credit should work to improve it in order to take advantage of even more savings.

At Benton White Insurance, we rate credit factors for both spouses on the policy.  The one with the best score is the one we use to help you get the best and lowest insurance premium rate.  It’s one of the many things we do to help our customers to win with the best pricing for best coverages.

Let us know if we can help you get the appropriate auto, home, liability, long-term care, life insurance, or anything else INSURANCE. We like to say: “If it can be insured, we can ensure it – and we service it too!”

We’re ready to serve YOU! TEXT or CALL us at 615.377.1212.  EMAIL us at INFO@BentonWhite.net or visit our website at www.BentonWhite.com for a wealth of helpful information – 24/7.

THANKS for the privilege we have in serving you, our customer.  If you’re not one of our customers yet, join us.  We’ll competitively quote your insurance quickly!  We treat everyone like we want to be treated!

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