Many people are surprised to learn that credit matters when it comes to buying auto insurance. One way to lower your auto insurance rates is to make sure your credit score is accurate and in tip-top condition.

Before shopping for car insurance, take time to review your credit score to make sure everything is accurate. If more than one person is going to be on the policy be sure to check their credit score too. By law, everyone is entitled to a free credit report once each year. To obtain your free report visit www.annualcreditreport.com or call 1-877-322-8228. You can also request a free credit report by visiting www.ftc.gov/bcp/conline/edcams/credit and filing out the appropriate form. 

In addition to your credit, take time to check out the credit of the insurance company itself! Yes, companies have credit ratings just like people so make sure the insurance provider is willing and able to pay your claim should the need arise. When searching for auto insurance it is important to comparison shop for competitive rates and service. Look for companies with high ratings by visiting www.ambest.com or Standard & Poor at www.standardandpoors.com. 

Finally, visit your state’s Insurance Regulation website to verify the good standing of the agent, broker or company before doing business with them. Many of these state sites will also provide free price comparisons. To locate your state Insurance Regulator visit http://www.consumeraction.gov/insurance.shtml.