We’ve seen a lot in the news lately talking about the price of automobile insurance rates and why they’re so high. So I wanted to look at some of the real factors that drive up the cost of insurance premiums for your car.
A Surprising Factor
I talked to some friends of mine, one was a previous insurance adjuster for a company, and another one’s an insurance agent. And both of them told me that the biggest factor in the cost of your automobile insurance premiums is your credit score.
Whether you have a low credit score or a high credit score, no matter what it is, there are things you can do to improve it, And that can bring the cost of your automobile insurance down.
A Useful Tool
One of the things that I use is called Credit Karma. I think it’s the most powerful weapon in your pocket, and you can download an app for free. After you put in your information, it will track everything about your credit score.
It updates your credit scores, I think, once every five days. And it also gives you lists of accounts that are open or closed, or might be delinquent, and what your payment history is.
How I Improved My Own Credit Score
And when I did it, I was astounded because I’m the third and my dad was a junior. Sometimes, the credit reporting agencies can really screw up data in that regard. When I first got on the app, I found out that in 1972, when I was 3 years old, I apparently had a Sears charge account.
So I went to Credit Karma and filed a dispute. They took that item off of my credit report, appropriately put it on my dad’s, and the next thing you know, my credit score went up like 32 points just because of that.
So it’s a very simple thing to do. I monitor it weekly. If anything weird shows up, you can click an easy button to file a dispute. And Bingo! The next thing you know is that your credit score has gone up.
The things that I have done recently for myself have caused my credit score to go up about 80 points, and it dropped the premiums for my auto insurance company. So this is the most important factor.
We’re going to come back with more information on different things. Just want to let you know about the credit factor, and I really hope it helps you.
If you have any questions, feel free to call me or email me at [email protected]