Buying Insurance: Why You Should Get a Credit Report

Credit reports are very important to almost anybody who is concerned about buying insurance. Some people do not need to buy insurance because they have made a large deposit. In California, for example, if you deposit over $35,000 with the state then you are not required to pay for monthly auto insurance. In the state of New Hampshire, you don't even need to have any car insurance whatsoever, but if you do not then you are still responsible monetarily if you cause an accident. In the other forty nine of the fifty states you are required to have car insurance.

Types of insurance

There are many types of insurance for which you will need a credit report. One type is health insurance, because if something happens and you have to pay a high co-pay then they want to make sure you are able to pay your co-pay so that you can continue buying insurance from them. Similarly, you should definitely be able to get auto insurance if you have good credit, or even bad credit. This is because auto insurance is mandatory in almost every single U.S. state, which means that there is a much bigger market for car insurance for people with bad credit than there is for people who want to get boat insurance.

Types of insurance plans

The insurance plans that you might need should truely be reflective of what your needs are instead of just being some boilerplate plan stamped out to fit the most people. Many online insurance brokers have plans that you can tailor make to your needs. For example, let's say you've never had a cavity in your life. If this is the case, then you will want to save money on dental insurance. But if you get sick a lot you can buy a better general health plan with a cheaper dental sub-plan, while offline brokers do not necessarily give you this flexibility.

Where does a credit report come into play?

A credit report helps out in a variety of ways. For one thing, insurance companies really do care about whether or not you are able to pay your payments every month. Because of this, they think that people with bad credit are not going to be able to pay off large amounts of money so you will not get as high quality insurance if you have bad credit. Since most insurers are not desperate for clients, you will not get a cheaper deal; you will simply get a cheaper policy that has less coverage. For example, it might not buy you a new car if your car gets totaled and it is your fault. It will only cover the other driver's car.

How can I get a credit report cheaply?

There are many online credit report websites such as creditreport.com that can give you a credit report for as little as $1. They also offer cheap credit monitoring services where you pay a small subscription to get updates to changes in your credit score every single month. There are similar competitors as well.

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