You did it — you finally paid off a credit card or made some serious strides with your finances. After this work has been accomplished, you may be awarded with a credit score increase. While this means it’s time to celebrate, you should also consider shopping around for better insurance rates.
Many factors impact our insurance premiums. Whether it’s a boat, auto, renter’s, or home insurance, many aspects play a role in determining our premiums. However, your credit score holds a lot of weight. If you experience a credit score increase, you could be entitled to a better deal.
Tips for Shopping Insurance Rates
After you see your score increase, it may be smart to shop around for cheaper rates. Here are some tips on how to do this effectively:
Car insurance is one area where it is typically beneficial to have multiple drivers on one policy. And since you now have a credit score increase, the savings can be substantial. That said, ask your car insurance provider how much you can save if you add a new driver. Another option is to shop around with other insurance companies to find the best quote. Combining different policies under one provider is another tactic to consider. For example, you may have a home insurance policy and car insurance policy under one provider. This will often lead to savings. By combining policies with an improved credit score, discounts are sure to follow.
Know the Numbers
When shopping around for insurance rates, many shoppers don’t even have a target number. This can lead to paying far more than you should. When getting quotes from providers, you should know what’s average, what’s cheap, and what’s far too pricey. Do research ahead of time to understand what’s a good rate for someone with your credit score.
Consider High Deductibles
Whether you’re dealing with car insurance or home insurance, you may consider raising your deductible for a better premium. However, not many insurance providers will tell you about this trick. And if you had a credit score increase, you could save even more. No matter what insurance policy you have, it may be possible to raise the deductible. Contact your insurance agent for assistance.
Only Get What You Need
If you just had a credit score increase, that might mean you’re doing better financially. While you may feel inclined to increase your premiums with better coverages, doing so might not be the smartest move. You may have more money to spend, but you should always only pay for what you need. To help in this regard, review your policies line-by-line and remove anything that isn’t necessary. When you do this after a credit score increase, the savings could be extensive.
Surprisingly, insurance companies sometimes have tons of deals they can give to their customers. However, not everyone takes advantage of them. While you can always ask your insurance agent if they have any specials, it’s more common when you have a credit score increase. You may get a lower premium, more extensive coverages, or discounts on other policies.
If you saw a boost in your credit score, following these tips can be the smartest move for your financial well-being.