There are a myriad of elements that play into the price you pay for insurance. Some are obvious. Your driving record and claims experience are well-known variables. Lesser-known, but equally (if not more) important, is your Insurance Score (IFS).
An IFS is derived from your credit score. In short, if your IFS is good, you will pay (significantly) less for your coverage than if your score is just average or (even worse) poor. Insurance scoring is a snapshot of your insurance risk picture at a particular point in time based on credit report information.
Insurance scores help to reward low risk customers with lower premiums. Nobody has a perfect insurance score. The score changes as new information is added to your credit report. To improve a score, you should pay bills on time, keep low balances on unsecured debt (like credit cards) and apply for new credit accounts only as needed.
You can rely on the Barndt Agency to provide pertinent advice surrounding this important, often-misunderstood element. Please contact us for a thorough review and discussion.