How Credit Scores Affect Your Premium

Tips for Maintaining a High Credit Score in San Diego, CA

Your credit score can determine the interest rate you pay on a loan or credit card and even prevent you from obtaining further credit. What you may not realize is San Diego car insurance providers take your credit history into consideration when figuring out your premium rates. The auto insurance experts at American Tri-Star want you to take a look at how credit scores can affect your premium.

Studies Link Good Credit with Fewer Claims

Studies have linked poor credit to increased submission of insurance claims. Since this information has proven to be consistent, most insurance companies provide better rates to those with excellent credit, as these are the customers who will likely require lower claims costs.

Insurance Companies Create Their Own Systems

The system an insurance company uses to determine the rate you pay is a based on a combination of factors in your credit report, driving history, and number of claims filed. The amount you pay can vary based on these factors, as well as your geographic location. However, California, Massachusetts, and Hawaii do not use this system.

Credit Score Matters

Your credit scores does carry weight in terms of how much higher your premium may be if you have credit issues. Damaged credit may even cost you more in premiums per year than a traffic citation, depending on all factors involved.

It’s always a good idea to contact one of the three major credit agencies to request regular copies of your credit report. You may be able to address discrepancies and increase your rating. A higher score can help lower your auto insurance premium and also affect premiums on property insurance in San Diego and other types of insurance.

If you have questions about auto, motorcycle, commercial, or homeowners insurance in San Diego, contact American Tri-Star today at 619-272-2100. Our friendly agents can answer all of your insurance questions and provide a free quote. We hope to hear from you soon.