Short answer, yes. Here’s why and how. In the 1990s, a few insurance companies starting using credit scores to create a “profile” of each person they insured. There are a number of other factors that also contribute to these profiles. Age, employment, where you live, income and driving record. After years of running the numbers and cross referencing against insurance payouts, many insurance companies followed suit and now all insurance companies use credit scores to help profile their customers.

What they discovered is that people with low credit scores are more likely to get into accidents. Therefore a low credit score can and will increase your premiums. So what can you do?

The best long-term solution – and one that will pay dividends in more areas than just insurance premiums – is to fix your credit score. There are many low-cost or even free credit-counseling services available in most communities and they work with folks with challenged credit to get things back on track. Not only will your insurance premiums go down, but also your ability to borrow money at a lower rate and qualify for other services will improve. It’s a win, win, win.

So if you’re concerned about your credit score and what it may be costing you, consider a credit score makeover. It will save you big.

To learn more about costs associated with your credit score, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.