Here’s everything you need to know about how credit scores affect insurance premiums.
Essentially, insurance is a financial product similar to a loan. When it comes to credit scores, insurance companies that provide insurance as a financial service look at credit scores just as banks would. Therefore the answer is yes, credit scores affect insurance premiums. The higher your credit score the lower your premium.
What types of insurance do credit scores affect? All of it! Life, health, home, auto, motorcycle, snowmobile, condo, golf cart…
Why do insurance companies look at your score? They want to make sure you will continue to pay your premiums and are less likely to file a claim. Credit scores have historically given financial services providers accurate insight into customer’s financial habits.
Raising your credit score could reduce your premium in half and save you over $1,000 in a year. So what are you waiting for? Start saving today!