You can't make sacrifices on your insurance, but getting the right insurance can be expensive. You want to do everything you can to get the lowest premium on your insurance without giving up on useful options or creating gaps in your coverage. One way you can lower your insurance premium is to take a look at your credit score.
Banks and credit card companies use your credit score -- calculated from your credit history -- to decide whether or not they'll loan you money. The credit score tells them information about how likely you are to repay the loan, etc.
As it turns out, your credit score is also of great value to insurance companies, because the same factors that affect your credit score also affect your "insurance score" -- basically, a measure of how valuable you are as an insurance customer.
Think about it: how would you build up a good credit rating? You would pay your bills on time, keep track of all your credit cards, and repay your loans according to your contract. If you can do that, you are probably a responsible, organized person who has a stable income and your life under control.
Responsible, organized, stable, control -- does this sound like the kind of person who would get into car accidents or leave their home unprotected from theft? Probably not. They're unlikely to file any major claims or losses. So, their insurance company probably won't have to worry about spending millions of dollars cleaning up after their mistakes.
Note that an important concept here is likelihood. When you purchase insurance, the insurance company is making a promise to cover you in case of an emergency. As long as it seems like your chances of getting into an accident are low, the insurance company can charge you a lower premium for a plan. Your coverage hasn't changed. Should you wind up in a tight situation, you're still covered.
A good insurance agent should be able to find you an affordable premium without making sacrifices on coverage. Remember that in the end, the most important thing with any insurance plan is that it's tailored to all your insurance needs. You don't want to spend money on something that's not going to be there for you when you need it.
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