There are few events more rewarding than watching your credit score rise dramatically after months of financial diligence. In fact, one way you can reward yourself for your hard work is by shopping around for lower car insurance rates.
While driving history is a factor, insurance companies primarily use consumers’ credit score to determine their rates and premiums. If your score has recently improved, it may be time to shop around and find out if you qualify for a lower rate with another company. It may also be a good idea to alert your current insurance carrier that you’re looking elsewhere, as your agent may renegotiate your rate or offer a discount to avoid losing you as a customer, according to U.S. News and World Report.
The benefits of a good credit score don’t end with car insurance rates. You may be able to negotiate a lower rent when you renew an apartment lease, or you could be in a better position to compete for a job against applicants who may have less-than-ideal credit scores.