Most people are aware that they have a credit score. This helps lenders to decide whether you would be a safe bet to lend money to, or to give a credit card to. There are lots of reasons why someone in this kind of position would check your credit score, which is why it needs to be as good as possible. The higher your score is, the better the chance of getting whatever credit or loans you might need during your lifetime.
But what about your insurance credit score? What does this mean?
We all need insurance for some reason. If we own our own home we'll need insurance in case anything happens with the actual structure itself. Wherever we live we need contents insurance to protect us in case of disaster or burglary. And if we drive we'll need auto insurance as well.
There are plenty of other reasons why we might want insurance too - and that might mean that the company we approach to give us insurance may want to check our credit history before they decide what to do.
Some companies might check your history and decide to give you a slightly different policy from the one they would give someone else. This might depend on whether you have a good credit rating or not. If you don't you may find you have to pay more for the privilege of getting the insurance you need. This could be because you are deemed to be more likely to default on your payments than someone whose credit history is impeccable.
Some people don't think that getting insurance is affected by your history in this respect. But as you can see it can sometimes be the case. It all depends on what insurance company you go to.
So you can see that it pays to keep your credit score as good as it can be. Regular checks on your score to make sure everything is correct are a good idea. This will allow you to rectify any mistakes, and hopefully if an insurance company does check your record before giving you insurance, you will still be able to get a good deal.