Maintaining good credit is good for many things, including better terms on credit cards and lower interest on loans. But, did you know that having a great credit will help you save a lot on insurance premiums? The reason is that most insurance companies check your credit score before giving you the price of premiums, and the better is your credit score, the lower premiums you will be paying.
Insurance companies believe that people with good credit score are less likely to file a claim, because if they are responsible with their finances, they are also responsible in other areas of life. Statistics for Auto Insurance prove that drivers with credit scores over 750 (very good credit) pay much less than drivers of the same age with average credit scores. On average, younger drivers pay around $1,900 for full coverage per year, while drivers from the same age group with very good credit scores pay $1,100 on average, which while not very noticeable per month, makes a large discount over a year.
Maintain a good credit score and review your credit history to make sure you are getting the best pricing for your insurance premiums. Your credit score really makes a big difference.