Credit History and California Insurance

To better help you understand what an insurance score actually is and how insurance companies may use it to determine your policy premium, listed below are three major points to review and assist you in this transition.

Insurance Score, What is it?

Your insurance score is a very carefully calculated score managed by several factors; starting from how long your credit history is, to if you have ever filed for bankruptcy or have any outstanding debts. All of this information is collected to determine a score to accurately guage the best price available for the policy that you need.

Information the affects your insurance score –   In addition to the reference in the above paragraph, information that will affect your insurance score will also be the amount of outstanding credit limits, ratio of debt to available credit and types of credit in use such as, auto loans, mortgage loans, etc. Positive and negative loans could be helpful or harmful to your insurance score.

What you can do to improve your insurance credit score-  

First things first, when trying to improve your credit score you need to pay down your debt and pay it on time. Paying bills on time will slowly but surely start improving your credit score.  Constantly review your credit score, make sure that your credit limits are not maxed and that your ratio of available credit to credit card debt is acceptable. Additional sources to help you achieve your debt resolution and higher credit score, visit the American Insurance Association.

 For further information on insurance credit score and how it affects your insurance, please contact your local insurance agent. Not all agency’s will use the above information the same, when contacting your local agent make sure and specify what they use to determine the best price for your California insurance