And what does your credit rating have to do with the cost of insurance? Quite a lot, actually.

With the amount of information now available, “thanks” to the internet, insurance companies are now able to drill down into this to pick and choose who they want to insure and at what price.

If you ask for a quotation with an insurance company direct or on an internet comparison site, you will be asked at some point if you agree to a credit check. Note: this may be a direct yes/no question or included in the long list of assumptions that most people just agree to. What if you take the option of not agreeing? Most insurers will simply refuse to offer a quote or will assume the worst and load your premium accordingly..

So, one way of keeping your premiums – be they motor, home or business – as reasonable as possible is to keep an eye on your credit rating and try not to do anything to make it worse. Not easy, as I know only too well, but it pays off.