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Another reason having a credit score is important!

Another reason having a credit score is important!

March 16, 2023

Great article by Suze Orman explaining that having a credit score IS important and can save you money (modified for my readers):

 “If you own a car, your auto insurance premium is riding on how good you are at paying your bills on time, and other signals of financial health. 

According to Bankrate.com, the average auto insurance premium this year (2023) is about $2,014 for someone with a good credit profile. But if your credit-based insurance score (it’s related to your regular credit score) is in the “excellent” tier, the average annual premium cost is $250 lower. If you have a 2-car family, working on improving your credit profile could save your household $500 a year if you go from good to great.

Most states allow insurance companies to consider your credit profile when determining the premium you will be offered. Only California, Hawaii, Massachusetts, and Michigan prohibit or restrict the use of your credit data in figuring out premiums.

If you live in a state where your credit can be used to determine your auto insurance premium, you’ve now got yet another reason to work on improving your credit. On-time bill payment is key. So too is whittling down any unpaid credit card bills.

If you’re in line for a tax refund, using it to reduce your credit card debt is not just good for auto insurance, it’s a really smart move if you are paying high interest rates. Just don’t turn around and use your credit cards to buy more “wants” than you can afford.

And for those of you who anticipate buying a car this year, make sure to calculate insurance cost as part of your buying process. A fancy car can cost $500 more a year to insure than a less flashy car.”

When was the last time you compared your auto / home / renters / umbrella insurance? Do you  have the proper coverage? Are you over-paying for protection? Are you under-insured? Are you certain?

If it’s been over a year since you last checked, call our office or click here to schedule a complementary Insurance Review Meeting with us. If you live in the PA, NJ or CO regions, we will analyze your policies, compare it to the dozens of other carriers we can partner with, and let you know where you stand.

We look forward to helping you soon!