Bad Credit And Paying More For Car Insurance

Bad Credit And Paying More For Car Insurance

farnsworth agency

If you’re over the age of 18, you’ve heard about the importance of maintaining good credit because, it will enable you to do so much more in your life than you could do if you had bad credit.

One of the consequences of having bad credit is that it will increase the amount that you pay for your Central Oregon Car Insurance premium each month.

Thanks to a recent report from www.insurancequotes.com we know that drivers who have bad credit can expect to pay an insurance premium that’s at least 91 percent more expensive than other drivers who have good credit, and fall into the same demographics of age, race, sex and marital status.

Unfair Treatment?

Besides credit being a factor that insurance companies use when factoring what your Central Oregon Car Insurance Premium should be there is a variety of other criteria that car insurance companies use when factoring car insurance premiums including: your driving record, age, time with previous insurance company, type of vehicle and any accidents or convictions that you may have had in the past.

How to Start Fixing Your Credit

In today’s world it’s not hard to have at least a few “skeletons” in the closet when it comes to a credit report; thankfully there are a variety of things that anyone can do to start fixing their credit and ultimately lower their car insurance premium as a result including:

  • Always pay your bills on time – Following this simple step will account for at least 35 percent of your credit score.
  • Establish credit now – If you are young and don’t qualify for credit anywhere or you’re in the process of re-establishing your credit you should find a friend or family member who will let you become an “authorized user” on their accounts. Doing this will help you to get qualified for your own accounts faster, especially if you manage your activities on those “authorized user” accounts wisely.
  • Watch what you borrow – Sometimes it may seem easy to get credit because, so many companies are offering it to you but, if you really want to lower your Central Oregon Car Insurance premiums you should watch how much and how often you borrow money because, the more times you borrow or apply for credit will be held against you.

For a free Car Insurance Quote contact the Farnsworth Agency today by calling us for a free consultation at (541) 318-8835 or clicking here to start your quote online. 

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