A New Way to Get Cheaper Car Insurance

When it comes to cheaper car insurance, most of us are all ears because we all want to be able to pay less money for car insurance. We all recognize that it is a necessary evil. Although it seems like we are throwing money out the window if we go for a very long time, perhaps even years, and do not make a single claim on it, but that one time where we get into an accident, we compliment ourselves and pat ourselves on the back for having had the foresight to have decent car insurance.

But that doesn't mean we are not seeking cheaper car insurance. There are of course many of the obvious ways to cut the costs of that insurance. Those methods would include raising the deductible amount for either the comprehensive and/or collision coverage, or even to eliminate the collision coverage for an older car that is already completely paid off.

One of the new ways to get cheaper car insurance that many people are not aware of is to improve your credit rating and your credit score. Really! Let's look a little closer at why this is the case.

Your credit report (and resulting credit score and credit rating) are a reflection of who you are in the eyes of the credit bureaus. While originally created to JUST provide information about your credit and payment habits, it has become much more than that, and contains information about where you work, how much you make, how long you've worked there, any tax liens or judgments against you, and much more than is technically not "bill payment history" information.

Many of the car insurance companies have gotten on board with this and they allegedly have statistical evidence that proves that people with lower credit scores make more car insurance claims. Like any other similar statement, this cannot be considered a blanket statement that applies to everyone, but many of the car insurance companies are firmly convinced that this is applicable to enough people where they are making this a new company policy.

Many civil action groups are fighting this, but at the same time, it is difficult to fight something where the statistical evidence backs up the claims that the car insurance companies are making.

What can you do? The best thing you can do, which you should do anyway, is to take steps starting right now to improve your credit rating. Get copies of your credit report and examine them with a fine tooth comb to make sure that there is no inaccurate information being reported about it. It is a fact that the majority of consumer credit reports contain errors, and those errors do not get corrected until YOU challenge them. In the meantime, those errors are being used to calculate your credit score, with the end result being that your credit score is probably lower than it really should be.

Take steps to raise your credit score, which is both your right as well as your duty to yourself, and you could find that your car insurance rates are lower as a result.