Are you sure of paying all your previous bills in time? Most of the insurance companies will like to know such details before offering any quote. The insurance companies will use your three digit credit scores to determine the kind of insurance plan offered to you. The cost of the insurance policies will also be calculated on the basis of your credit scores. The premiums on your insurance policies may double if you have missed a couple of payments on your credit cards or other financial obligations. Regardless of your sound business relation with the insurance company, you might lose your policy if the credit scores keep moving down in the course of time.

Many people are surprised to know that the insurance policies and the premiums have some kind of connection with the credit ratings or the credit scores. Most of the insurance companies feel that if you are not responsible with your money, then you are more than likely not going to be responsible on the road also. People who manage their personal finances properly tend to manage other important aspects of their life with the same level of responsibility. Most of the insurance companies will definitely review this factor before offering any kind of insurance policy.

There are many people, especially the ones having low credit scores, feel that credit scores for an insurance quote or insurance policy premium is unfair and hurts only the working class. Opponents argue that the low economy has put a strain on the large amount of working group. Missing a couple of payments due to a tight financial situation is often possible and because of this, the premiums should not go high. There are so many areas where public transportation is not readily available and insurance is a must. People who are already going through tough financial situations and are hardly able to make ends meets will be severely affected by the increased premiums and will fall even further behind.

This entry was posted on Monday, December 29th, 2008 at 5:45 pm and is filed under Credit Score, Insurance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.