Your Credit Score - How it affects your insurance premium
For several years, insurance companies have been rating home and auto insurance using an "insurance score." The largest component of this score is your Credit Score. My insurance premium went up more than I expected and I inquired to why. My insurance score had gone down? How could that be? I have no debt and I pay off credit card balances in full every month. I ran my credit score and it showed a late payment on a card. I then remembered that I had chosen email notice of my statement on a card that I don't use more than one time a year. I missed making the payment ($53 balance!) and this caused my credit score to go down.
While my situation was not an error in the report, errors do happen and you don't want those affecting your insurance premium.
You should obtain a FREE credit report once a year to verify accuracy.
How do you obtain your free report?
The three biggest credit reporting companies have setup a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.
You can visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail to:
Annual Credit Report Request Service
PO Box 105281
Atlanta, GA 30348-5281
Do not contact these companies directly. They only provide free annual reports through annualcreditreport.com, 1-877-322-8228, or via mailing in the form.
You may order your reports from each of the three nationwide credit reporting companies at the same time, or you can order your report from each of the companies one at a time. The law allows you to order one free copy of your report from each of the nationwide credit reporting companies every 12 months.