You have heard it before. Neither your car insurance company nor the agent with whom you work are your friends. You are a client. Thus, you need to always keep in mind that some very important secrets are being kept from you — but we are going to reveal quite a few of them in the coming posts.
Now, the first secret is not so well kept any longer. It involves your credit. If your credit is good, you will be able to pay less for your car insurance. Your credit report will get pulled by most if not all insurers, because many studies show that there is a direct link between your score and how likely you will be to file a claim. It also reveals your bill paying habits.
This information is used to create what is known as an “insurance risk score.” That will not be available for you to see, but it is quite similar to your personal credit score, so knowing the shape your score is in can help you save money. Remember, there are lots of things you can do to improve your credit score.