Bad Credit Might Result in Higher Las Vegas Insurance Rates

bad creditYou are probably thinking that auto insurance in Las Vegas, and you are partly right. If you have a bad credit score it will be very difficult to find a reasonably priced insurance policy. According to specialists, drivers with bad credit scores pay approximately 91% more, on average, than people with excellent credit scores. If you have an average credit score you will probably have to pay 24% more than people with excellent scores. So what can you do to pay less, while also benefiting from an excellent insurance policy in Las Vegas? We can’t remember how many times we were asked why rates are so high, even by people with impeccable driving records. In most situations, the credit history is to blame.

Even if you might think that this is not very fair, but apparently there is a strong correlation between bad credit score and higher risk drivers. So before you try showing the world that you always pay your bills on time, we have some news to share with you.

How to Get the Best Las Vegas Insurance Rates 

As important as good credit history is for insurance prices, it is not the decisive factor. There are many other elements that might affect your rate. For example, where you live is extremely important for auto insurance coverage. Apparently, Las Vegas residents that inhabit accident prone areas will be more likely to pay higher rates. If you are thinking of moving to a certain location, talk with your insurance agent beforehand to see how it will affect your insurance rate.

Another important factor in deciding the insurance rate is the model of your car. Sport cars, luxury vehicles and SUVs have the highest price, while economical, city cars are insurance policy friendly. Last but not least, the driving record will also come into play when calculating the car insurance quote. Have you gotten many tickets in the past? They will ultimately result in higher rates, so make sure you go to traffic school or have a lawyer fix this problem before it goes on record.

How to Manage Credit for Better Insurance Rates

Here are a few tips that will help you keep your credit in order, and also ensure that you get a better insurance rate for your car:

  1. The most sensible rule when it comes to improving credit score is to always pay bills on time. According to statistics 35% of credit score comes from paying bills on time.
  2. The other 30% of the credit score is calculated as the ratio between how much credit you use, compared to how much you have. Borrow sparingly. Let’s say you have 20.000 dollars worth of credit. Try using only 2000 dollars at a time to increase it.
  3. Shop at an insurance broker: There are many brokers who can fish out companies that don’t make the insurance score their biggest factor in deciding a rate. There are a handful of databases online where you can find prices in this situation.
  4. Keep an eye out for fraud on your account. There might be things are your credit card that aren’t your fault, but may harm your overall score. Maybe the gas company reported a late bill, even if it wasn’t the case. It’s up to you to keep the data accurate.
  5. Last but not least, keep at it! As long as you diligently preoccupy yourself with your credit, it will improve!