Bad credit equals higher auto insurance las vegas rates!

Bad credit equals higher insurance rates!

Ever wonder if what you pay for for your auto insurance in las vegas is too much.  If you have a bad credit score, your answer to that is probably yes.  According to Insurancequotes.com, drivers with poor credit pay twice as much — 91 percent more on average — than those with excellent credit scores. Those with average credit pay 24 percent more.

We have had alot of people come in and ask why their rate is so high, even though they have a great driving record.  Majority of the time, it is due to there credit history not being the best.  Now alot of people might think that is not fair, but there are many studies out there that show a direct correlation between bad credit scores and higher risk drivers.

There is good news though!

Although credit has to do with your insurance prices, there are also different factors that affect your rates.  Where you live affects your auto insurance rate a lot.  If you live in an accident prone area, you are likely to pay higher rates.  Try talking with your insurance agent before moving to a certain location to see how much of a difference your rate can be.  Another factor that can change your rates is your driving record.  A lot of tickets equals higher rates.  If you ever get a ticket, make sure and go to traffic school or get a lawyer to fix it so it doesn’t go on your record.  A ticket can severely impact your insurance rate.  Finally, the last major thing you can do is to make sure and ask your insurance agent if a certain model of car will increase or lower your insurance rate.  Sports cars, SUVs, and luxury cars seem to increase prices a lot.  

Back to the credit talk.  Luckily credit is easier to fix than a bad driving record.  A few tips to increasing your credit score.

Pay on time.  Sounds obvious, but 35 percent of your credit score comes form paying your bills on time.  

Borrow sparingly.  About 30 percent of your score comes from the ratio of how much credit you use compared to how much credit you have.  If you have 10,000 dollars worth of credit, try only using only about 1,000 dollars of that at a time to increase your credit.

Manage your accounts.  Don’t always keep taking those offers on credit card deals.  Every time you apply for a new credit card, it hurts your score.  Make sure and keep making payments on the loans you have so that they report back good news to the credit bureaus.  This can equal about 20 percent of your credit score.

Check for fraud on your account.  Sometimes there are things on  your credit report that aren’t your fault.  Maybe somebody used your identity to open up a credit card.  Maybe the gas company accidentally reported you were late on a bill when you weren’t.  Make sure everything on your credit is up to date and accurate.  You can check once a year on annualcreditreport.com for free on any items that may be wrong on there.

Keep at it.  The longer you keep working on your credit, the better it will become.  Length of time can equal up to 15 percent of your credit score.  

Finally, shop at an insurance broker.  Many insurance brokers can find companies that don’t make the insurance score the biggest factor in their decision about your rate.  Las Vegas Auto Insurance represents over 15 different insurance companies, so they have the ability to search their database for the best prices for your situation.   So, as you are trying to fix your credit score, we can get you the best prices with companies that take more emphasis on the other factors of your insurance score in your life.  Give us a call, we’ll get  you the best price good credit or bad.  

Nevada Auto Insurance
702-570-5777
www.nevadaautoins.com
1953 N Decatur Blvd
Las Vegas, NV 89108