How Your Credit Score Can Score You an Insurance Discount

by | Nov 5, 2018 | Uncategorized

The next time you visit your insurance broker, you may be provided the option of consenting to a credit check. No, your broker is not getting into the loan business. Instead, we’re helping BC residents find out if they qualify for insurance discounts that they didn’t know they were eligible for. That’s right – your credit score can score you a deal when it comes to home insurance. Below, we provide everything you need to know about this opportunity to save money.

3 Things BC Residents Want to Know About Consenting to a Credit Check to Get a Better Discount on Insurance

1. Who Can Qualify for Discounts?

Across Canada, rules and regulations vary on insurer access to credit scores to underwrite insurance. For example, residents of Newfoundland and Labrador don’t have the opportunity to get credit score based discounts on insurance. However, in British Columbia and some other provinces, you do.

By getting your early credit check consent, we’ll get a head start in putting together a policy that factors in your credit score for more savings. Your credit information (in addition to traditional discount qualifying factors) will be used in your insurers analysis to determine your eligibility for reduced pricing on future policies. By maintaining a dialogue with your broker, you will stay well-informed every step of the way. The key here, is establishing that line of communication with a broker. If you haven’t done so yet, contact us for more information right away. And keep reading.

2. Your Credit Rating Will Not Be Impacted

The first concern people have about the words “credit check” is the impact it may have on their credit rating. It’s a fair concern and while you absolutely have the right to withhold consent, you have nothing to worry about because insurer inquiries will not impact your credit rating.

Insurance companies simply use credit scores to help determine the likelihood of a future insurance claim. You’re taking no risk in this assessment, and it can continue annually as long as we maintain your consent to do so.

3. What May Impact Your Opportunity to Get a Discount

Your ability to nab a great discount (in this capacity) is contingent upon your credit score and thus relies on the same elements that impact your credit information. In Canada this accounting includes (but is not exclusive to) the following:

  • How long you’ve maintained a credit rating.
  • Whether or not you carry a balance on your credit cards and the amount outstanding debt as it applies to your limit.
  • Regularity of credit card (etc) payments.
  • The number of attempts to get more credit.
  • The types of credit used.
  • Instances of debts being sent to a collection agency.
  • Record of insolvency or bankruptcy
  • Mobile phone, cable, and internet invoice upkeep.

But don’t worry, even if you don’t qualify for a discount on your next renewal, you may indeed become eligible in the near future as you improve your score in the months to come. The Government of Canada has provided a wealth of information resources on how your credit score is calculated and what you can do to improve it. It’s actually a forgiving system that rewards you with points for actions that show you use credit responsibly. And given that the insurance industry’s inquiry doesn’t impact your rating, it won’t hurt to check when the time comes.

This discount opportunity doesn’t appear to be going away anytime soon. By establishing a relationship with an independent broker who will stand in your corner, you gain access to a resource that will consistently seek out ways for you to cut costs on your insurance coverage. To learn more about this opportunity to save on your homeowner and business insurance policies, contact Park Insurance to speak to an insurance broker today.

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