You're busy living life. You take care of your family, work hard and pay your rent on time. Then, you learn your insurance carrier has increased your rates. Why is your renters insurance premium higher than it was before? It could be due to a change in your credit score. Insurance carriers look at the whole picture. They use statistics and data to determine how much your insurance premium should be. One of the factors they look at is your credit score.
How Do Renters Insurance and Credit Scoring Relate?
You may easily be able to see the connection to why a landlord may need to check your credit score. He or she wants to make sure you’re able to make payments on time. Why do insurance carriers look at this information, then? In part, it is for the same reason. Will you make payments on time? The second reason is because, based on statistics, those with a higher credit score are less likely to file claims. Even if you can do nothing to prevent a claim, insurance carriers use data based on numerous key areas to determine this level of risk.
How Can You Reduce Your Renters Insurance Rates?
If your insurance rate has gone up, you can often do something about it. First, contact your insurance carrier and find out what triggered the increase. Then, don't hesitate to look for a new plan from a new carrier with the help of your independent insurance agent. You can often find cost savings opportunities.
It’s worthwhile to work on increasing your credit score as well. The fact is, a good credit score can help to show insurance carriers, future lenders and even future employers that you are a low risk. More so, it could help you to save on your insurance plan. To improve your score, consider paying off debt, make payments to lenders on time and reduce the amount of new credit you apply for in the short term.
Your credit score is only one key component of your renters insurance rate, though. Be sure to ask your agent for applicable discounts that could help you to save even more money on your plan.
Can you save on coverage? Call Sweet & Baker Insurance Brokers at (415) 512-2100 for more information on San Francisco renters insurance.