A Bad Credit Score Can Raise the Cost of Your Home Insurance

When it comes to insuring your home, your credit score actually affects the price you pay for your homeowner’s insurance. That’s why it pays to shop around for the best rate possible. Insurance companies know that if you have to do this by phone you’ll usually peter out and stay with the policy on hand, but if you use the interent they put their best foot forward to capture your business, knowing that you can gain multiple highly competitive quotes instantly for the same coverage, and it only takes a few minutes to switch policies.

Insurance companies typically use “insurance scores” to gauge how well individuals manage their finances. Those scores are detemined by your past insurance experience AND your credit scores. The information on your application, driving record, and loss reports are all factored together to come up with the insurance score, and studies have shown that homeowners with a good credit history file fewer insurance claims, so their homewoners premiums can be lower because they are less likely to file claims.

In actual fact, if your credit score is poor, you could be paying up to 50% more on your homeowners insurance premium, reports the Insurance Information Institute. The solution is to definitely shop around asking for online quotes from multiple brokers, such as through an online service such as InsureMe. The painless process starts with the input of your zipcode, and then you can have insurance companies giving quotes to you to win your business.

In today’s world with everyone cutting costs, it makes sense to give these internet insurance finders a try. Start here by finding out how much you’re overpaying.

To find out your credit score, ConsumerInfo.com can provide consumers with instant access to their credit report and score. It has credit monitoring products that monitor all three national credit reports, identity theft insurance and fraud resolution.


Copyright © 2010, 2011 by CaliforniaConsumerBanking.com. All Rights Reserved. Information from third party sources deemed reliable but not guaranteed.
Privacy Policy | Terms of Service | Contact Us | Press Releases | About Us | Staff