Your insurance credit score may differ from company to company, as they will use different factors in determining your premium. Notice that we call it an insurance credit score. This means that it encompasses many factors including credit.

Since each insurance company uses different techniques to determine your credit score it is hard to tell you what a good credit score is. Usually a good credit score will result in lower premiums.

Your agent or company is not obligated to tell you your credit score. In fact, they might not even know what it is. All they usually know is that your credit score qualifies you for a specific rate or policy. Some companies also offer better rates under each qualifying tier.

If you feel that there is incorrect information on your credit report, you should tell credit bureau. If you report and error, credit bureau must investigate error and get back to you within 30 days. You can ask credit bureau to send a notice of correction to any creditor or insurer that has checked your file in past six months. Once errors are corrected, it is a good idea to get a new copy of your credit report several months later to make sure wrong information has not been reported again.

The three national credit bureaus are: . Trans Union (www.transunion.com or 800-888-4213) . Equifax (www.credit.equifax.com or 800-685-1111) . Experian (www.experian.com or 888-397-3742)

Tell your insurance company. Do not wait until credit bureau investigates errors to contact your insurer. Tell your insurance company right away and ask if errors will make a difference in your insurance. If errors are big, tell your insurer that you are disputing information and ask if they will wait to use your credit information until errors are corrected. Small errors may not have much affect on your insurance credit score. If errors are big, it can make a significant difference in your premium. Some companies are unable to adjust premiums until score is corrected, but it does not hurt to ask.

If you have taken steps to improve your credit, score you should ask your insurance company to re-evaluate your credit score at renewal.

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Jon Register is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower cost of your insurance in other ways. For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing book value of your vehicle and premium that insurer has offered, you may find that it cost as much for insurance as it does for vehicle. If car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is amount of money you have to pay before your insurance company begins paying rest.

Understanding how discounts affect your insurance rates is important to save you money.

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Tim Register is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.