Why Your Credit Score May Affect Your Insurance

The biggest impact to your insurance rate is your credit score.

Many of us may not like it, but insurance companies have discovered that people who have had financial issues are more likely to have more tickets and more accidents. This also holds true for renter’s and homeowner’s policy rates. It’s unfortunate, though, because a good many people who have had financial hardships and clean driving records will still pay the price for having poor credit. In these cases, their insurance quote will be much more than a person without a record of tickets and accidents.

Home insurance is not spared when it comes to insurance companies charging higher premiums for a person with a lower credit score either. However, there are exceptions to this rule. People who have excellent credit and have taken on investment properties with first and second mortgages, prove that they’re willing to take higher risks. Though they have always paid their bill on time, they aren’t given the best rating when it comes to insuring new properties. An insurance company will see them as a person willing to take on financial risk and will likely handle their properties in the same way.

If your policy is about to be renewed or you are looking to buy insurance, let the Leinweber Insurance Agency be your first stop. We represent multiple companies which allows us to find a company that’s right for you. If you’re a resident of Denver, Thornton, Westminster, Northglenn, or Firestone, give us a call and we’ll be more than happy to give you quote.