While most are taught to take care of their credit, individuals with poor credit history are not only hit with high interest rates, but could end up with higher premiums. Insurers believe that the way a person handles their finances reflects the chances that they will file a claim and have done numerous studies to show this correlation; in fact, many states tend to agree and allow insurers to use this information during the underwriting process.

Taking care of bills and avoiding dings on a credit report is another good way to make sure rates are as affordable as possible. Of course there are other ways to keep prices down, the Illinois Department of Insurance advises motorists check the cost of coverage on an automobile before making a purchase and this is often overlooked by consumers; the price to insure vehicles can be very different even if they may seem similar.

Even though insurers determine premiums, individuals can take steps to make sure that they do not have to pay morethan they have to and should definitely control their costs whenever and wherever possible.