The REAL SECRET To Lower Auto Insurance Premiums

By Gary Brown

Have you ever discussed auto insurance with a friend, only to find out you pay substantially higher premiums? Everything being equal, it probably has nothing to do with they type of cars you drive or the zip code in which you live.

About 90% of all insurance companies now use "insurance credit scores".

When you call an insurance agent or insurance company for an auto insurance quote, the first step is to run your score. This determines what "tier" you are placed into. Some companies have up to 40 tiers. Once it has been established which credit tier you qualify for, other factors are then accounted for: your zip code, vehicles, driving record, and discounts.
Two neighbors could call around for an auto insurance quote and have the exact same vehicles, both with clean driving records, and qualify for the exact same discounts. The one with the better insurance score will pay less, some times alot less.

What determines this score varies from insurance company to insurance company. The best advice is to call your agent and find out what tier you are in. Find out what factors their company uses to determine good scores from bad. It is possible your agent does not even know or understand. Ask they to call and find out. Insurance Tempe
Don't be afraid to search for lower auto insurance. Getting lower cost car insurance is easy if you put the effort in. Finding a company that will ding you less for your credit score is the key. Try an independent insurance agency.

Some things to consider as far as improving your insurance credit score: Do not carry too many credit cards. You may have active cards with a zero balance but it is likely they are dragging your score down. These insurance scores do not like too many open credit accounts. Cancel the ones you do not need/use down to one or only two. Also, do not max out your credit line. If you have a credit card with a $12,000 credit line and have $10,000 charged, the scores will likely ding you. Have fewer cards and pay them down.

The most obvious one of all? Pay your bills on time.

Gary Brown is principal owner of Choice Insurance of Arizona. He has been serving Arizona residents for car insurance and home insurance for nearly 14 years. Find more insurance and financial information at Insurance Tempe
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