Learn how civil check helps lower insurance premiums

Since your credit report is the gateway better loans, credit cards and insurance dealings, get a cibil check immediately if you are looking for an auto loan or a home loan. Keep in mind that your insurance scores predictably impact your insurance rates. A person with a mediocre credit rating (something between 500 and 699) will pay more for an auto-insurance than someone with above 750. 

Insurance companies use credit-based insurance score and only a certain element of your credit report taken into consideration. The idea behind it is to gauge how risky you are to them. Today, more than 84% of insurers consider their credit scores while calculating car insurance premiums. 

Factors that influence insurance premiums

• Age and driving experience
• Claims or accident history
• Geographic location 
• Your credit history
• Make and model of the vehicle.

What insurance companies look for?

If you maintain a good credit score, you remain open to possibilities to save in all types of insurance including auto insurance. The company takes stock of your credit history and driving record before deciding your insurance premiums by running a cibil check on your scores.

Most insurance companies use an applicant’s credit history to predict if he would file insurance claims. They go by the basic rule that applicants with good credit histories are likely to have fewer losses. They look for any missed payments, frequency of loans applied for, ongoing debts, tax liens, and recent inquiries that help them in understanding customer’s financial standing. So, if you are thinking about what your utility bill payments, tax liens or existing loans have to do with your auto insurance, we assure you that it has a lot to do with it.

Tips to low car insurance rates

1. Check credit scores frequently: Avail the benefit of free cibil check from your bureau to rule out any miscalculations, unwarranted entries or possibilities of identity theft.
2. Respect your pocket: If you are already low on finances as well as credit scores, it would be wise to postpone the idea of purchasing that plush car and rather go in for a vehicle that suits your budget.
3. Make timely bill payments: A delay in payment could cost you dearly. Clearing off your loans in time could help you get a good history for a longer period and eventually boost your scores.  
4. Avoid fresh loan to pay off older one: This could harm you in more ways than one. It would rather be a good idea to evaluate your expenses and curb them to pay off your debts.

Enjoy the benefits of a good credit score and stay with us for more on https://civilscores.com/improve-credit-score.