According to the Insurance Information Institute (III) there are many factors insurance companies use for determining rates, with one of the most important items being your credit rating.
Most insurance companies use credit ratings to help determine insurance premiums. The train of thought that goes with this is if you’re a responsible person, you likely don’t spend freely and irresponsibly.
Homeowners insurance companies generally view low credit scores as the sign of someone who has little control over their finances and therefore more of a risk to insure. You can do yourself a great service by having a budget and sticking to it. Don’t use credit cards for anything other than emergencies and make sure you pay your bills on time every month. This will help keep your credit rating in good condition and won’t raise any eyebrows or attract unnecessary attention.
Homeowners insurance can often be confusing because many homeowners don’t always fully understand how insurers determine what to charge for premiums.
Once you understand how these premiums are calculated, you can proactively work with your insurer to lower you premium. What an insurance company does when they determine your rates is assess their risk in insuring your property.
Using InsuranceUSA.com can help you find the right homeowners insurance. So, don’t delay any longer, simply enter your zip code and get started today!