Some of us know credit score but have not really heard so much about insurance score. Let's try to know more about it as it really affects the rates we pay on our auto insurance policies.
In reading this article, try to know the factors that affect your insurance score, how it affects the rates you pay and how you can improve it.
It has been shown by studies that there is a close relationship between a persons credit history that is basically how a person handles his / her finances and the likelihood of their making a claim. So, an insurance score is a ranking based on a person's credit history.
It is believed by the studies taken that people with low ratings are more likely to make claims and that people with a higher score are less likely to make claims.
Remember that if you are likely to make a claim for whatever reasons, you would certainly pay more on your premiums so people with low scores tend to pay more on their auto insurance rates than those with higher scores.
If you are interested in improving your score then you need to start doing the following:
Pay your bills when due. It is not good to let a payment go unpaid because when you pay it later, you would pay with interest and you would have added a bad record on your credit rating.
Do not amass credit cards. try to use a few and manage them properly.