UNDERSTANDING YOUR INSURANCE SCORE

Several insurance companies use your insurance score, together with a number of other factors, to determine the best pricing level for you. Generally speaking, customers who have high (good) insurance scores and no prior claims or accidents, qualify for the best price.

An insurance score based on credit history helps predict the potential for future losses, but it is NOT the sole factor in determining the cost of your policy. It is used with other factors to arrive at the best rate possible.

AN INSURANCE SCORE INCLUDES:

• Payment history
• Bankruptcy, foreclosures and collection activity
• Length of credit history
• Amount of outstanding debt in relation to credit limits
• Types of credit in use (ie. mortgages, installment loans)
• Number of new applications fro credit

TEN TIPS TO HELP YOU IMPROVE YOUR INSURANCE SCORE:

• Pay your bills on time.
• Manage your outstanding balances.
• Avoid excessive inquiries to your credit reports.
• Limit the number of credit accounts.
• Review your credit report regularly.
• Avoid "quick" credit fixes.
• Manage your debt consolidation.
• Limit the amount of new debt you take on.
• Establish credit if you do not have a long track record.
• Work with your creditors.