Reader question:

How do I get a very cheap car insurance score?

Mandy

Great question.

There are several ways for you to get a very cheap car insurance score. These ways include looking into discounts that apply to you, raising your deductible, and lowering the amount of coverage you have to the minimum. The kind of car you drive and how you drive it will also be important in the process. But did you know that one of the biggest factors that goes into the decision of giving you a high or a low car insurance premium has to do with something that ostensibly has nothing to do with driving?

What?

It’s your credit report. More and more car insurance companies are using the details on their customers’ credit reports to determine what is called an insurance score. The insurance score is the biggest factor in your premium rate decision. While it is not decided on the same way that your credit score is, the insurance score has a lot more to do with the regular payments and good standing than a significant credit history and few accounts.

Improving your credit report can cause a dramatic decrease in your premium rates. This takes time to do, but it is worth it in every aspect of your life. What you have to do is order your free credit report from each of the credit reporting agencies, and then start payment plans with everybody that you owe money to. Even if the payments are not big and the interest rates go just as fast, paying steadily goes a long way towards improving your credit score, and, as a result, your insurance score.

Cheers,

Fashun Guadarrama.