Did you know that your credit rating may have an impact on your snowmobile insurance rates? Yep, that’s right – your rates may go up or you may not get insured at all if your credit isn’t that great. Because of the recession, more snowmobile providers will check credit rating. And as people get laid off or receive pay cuts, these companies want to make sure you’ll be paying your bills. Don’t worry – if your credit score is less than stellar, all is not lost. But you should still be educated on how and why snowmobile insurance scoring works.

Snowmobile insurance scoring is based on different parts of your credit report. Insurance companies want to see if you’re fiscally responsible – to them, if you’re responsible with your money, you’re probably more careful with your snowmobile and less likely to get into an accident.

There are five different criteria snowmobile insurance providers use to determine your insurance scoring. They are:

• Your payment history

• The amount you owe

• The length of your credit history

• Any new credit recently opened

• The types of credit cards you have

So what doesn’t influence an insurance score? These would be things like race, age, gender, marital status, salary or wages, or if you’re using a credit counselor. Don’t be concerned if an insurance provider asks you for this information – it’s just part of the process, but they won’t be factored into your insurance score.

If you’re worried that snowmobile insurance scoring will affect your credit score, you don’t have to. When an insurance provider looks into your credit rating, it’s considered a “soft hit.” Also, insurance providers will not actually see your credit score; they will only have access to your insurance score.

Not all states or provinces allow for snowmobile insurance scoring, so ask your powersports broker or insurance provider if your credit will your snowmobile insurance.

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