Insurance companies use many factors when they calculate what to charge for their policies, and more than 90 percent of them consider credit history when setting car insurance rates. Insurers have found a strong correlation between bad credit and a higher likelihood of a client filing an insurance claim.
Therefore, if you have bad credit, it’s likely costing you money in your car insurance premiums. According to Nerd Wallet, Florida drivers with bad credit pay an average of $1,898 more per year, or $158 more per month, for their car insurance than drivers with good credit.
While it’s true that having good credit is one way to help keep your insurance premiums low, even if you have bad credit, or little to no credit history, Lakewood Financial can help.
We’ll do the checking for you!
If your credit is less than stellar, you should definitely compare the insurance rates of several different companies before buying a policy. While there are insurance companies that don’t use credit as a rating factor, they may charge higher rates overall. A better option may be an insurance company that penalizes you less for your credit score than other companies do! (And don’t worry—getting multiple car insurance quotes does not lower your credit score.)
Sound confusing? It doesn’t have to be. Lakewood Financial can do the checking for you! We represent more than 40 quality car insurance companies, and have more than 25 years in the insurance business. We’re committed to helping all our clients find the most cost-effective policies possible.
Improved credit equals lower insurance rates
It’s still a good idea to improve your credit by paying bills on time, maintaining a low credit utilization rate, and checking your credit report to make sure it’s accurate. If you don’t have much credit history, you can build one by applying for credit judiciously—just don’t apply for too many lines of credit, because that can also hurt your credit score. You may need to start with a secured card, or by becoming an authorized user on a trusted family member’s account.
As your credit score improves, you may be able to save money on your insurance premiums. Be sure to ask your Lakewood Financial agent to compare rates at renewal if your credit has improved.
No matter whether your credit is good or bad, Lakewood Financial has an insurance option for you. Give us a call at 941-747-4600 or email us for a car insurance quote today!