When looking for car insurance your credit score can really play a big part in the rates you get. Many insurance companies check your score as a standard part of the application process. People with a lower credit score may be charged more for their insurance coverage, since having credit issues is considered by the insurer as an indication that the applicant may not be very responsible.
While a person can run into credit troubles due to illness, divorce or unemployment and be a very responsible and safe driver, the insurance company’s underwriters look at the numbers in front of them when deciding how much to charge for car insurance. The person applying for coverage doesn’t get the chance to offer any further information other than what is on the application form.
As a car insurance consumer, you can make sure that the insurance company is basing its assessment of you based on accurate information. Order a copy of your credit report and examine it carefully for any errors. If you find one or more things listed on it that need to be corrected, report them the credit reporting agencies and ask that the report be changed accordingly. You will need to order a second credit report after a few weeks to make sure that the information has been updated.
If your credit score has gone up since your policy was issued or renewed, you can let your car insurance company know and ask for a discount. If the company refuses to give you a break on the price, you can start gathering car insurance quotes from other companies.