How to Lower Your Insurance Premium & Avoid Becoming Assigned Risk
By Philip L. Franckel, Esq.
Get a Copy Of Your C.L.U.E. Report
The first thing to do is to get a C.L.U.E. report and check for errors.
A C.L.U.E. report is like a credit report but is for your claims history instead of your payment history. Just like credit reports contain errors, your C.L.U.E. report may contain errors.
Your insurance company uses your C.L.U.E. report to determine:
- The amount of your premium
- Your premium on renewal
- If they will sell you insurance, deny your application, or terminate an existing policy.
Check the information on your C.L.U.E. report to make sure there are no errors that will cost you money, such as a claim or accident that was related to someone else because they had a similar name or address. If you find any errors, notify C.L.U.E.
Find out how to get a copy of your C.L.U.E. report online free.
Do Insurance Companies Look at My Credit Report?
Yes. Insurance companies also look at credit reports to determine premiums because they found that people with better credit scores have fewer claims. Consequently, if you have a poor credit report you may find yourself paying more for home, car, and motorcycle insurance.
It has been reported that 50-70% of credit reports contain serious errors. Request a copy of your credit report from all three credit reporting agencies, Equifax, Experian, and TransUnion, and notify all three agencies of any mistakes you find. You can get a free copy of your credit report once every 12 months at annualcreditreport.com or you can call 1-877-322-8228.
If you have any bad or derogatory information reported on your credit report, just dispute it even if you don’t have a reason. Many times, it will be removed.
Does Paying My Insurance Premium Late Affect My Rates?
Always make at least the minimum payment for your bills on time. Avoid using store-brand credit cards, because they report late payments immediately. Pay particular attention to your insurance bill. Insurance companies do not like customers who do not pay their insurance premiums on time and this may also affect your premium.
More Ways to Lower Your Insurance Premium
Don’t buy or use glass coverage and don’t use towing coverage if you didn’t have an accident
This article is for informational purposes only, should be considered advertising, is the opinion of the author and is not meant to provide legal advice which cannot be provided without formally retaining a lawyer.
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