Bad Credit Record? It Might Affect Your Car Insurance Premiums
Have you ever been blacklisted for something silly? Perhaps an outstanding retail account or a medical bill you clean forgot about. We so often get completely nonchalant about stuff like this, but the reality is it eventually catches up with us.
So what has this got to do with car and home insurance?
A lot! Because insurers
aren’t looking for new policy holders with bad credit ratings.
Let’s look at it from the insurer’s perspective for a second.
Some guy you don’t know from a bar of soap, asks you to insure his furniture for R200, 000. You do a credit check and see he owes some people R50, 000. As an insurer the red flags start to pop up really quickly.
Over and above that, the guy looking to take out the car and home insurance
doesn’t have an insurance history, so you can’t see:
- how often he claims
- what he is claiming for
- how much each claim amounts to
Would you be willing to take on the risk? Would you offer him the best possible deal in an effort to get his business?
This is how insurers
look at risk, and if your credit rating is stuffed you aren’t going to be high on the list of candidates the insurer is looking to cover.
Check your credit record, make sure it’s clean and avoid this type of thing altogether.
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