Insurance Price Optimization

MoneyTips

It makes sense that if you have a car accident, your insurance premium could go up. What doesn't make sense is that if you don't have an accident, you could also end up paying more, for no reason at all.

The explanation behind such price hikes is that more and more insurance companies are adopting a practice called "Price Optimization." This involves analyzing data on consumers to find out who will shop around and who won't. If a computer algorithm estimates that you aren't likely to be a savvy shopper, your premiums could likely go up.

That means that even if you are a careful driver with a great credit score, no tickets, accidents or other damage claims, you can still find your insurance premiums getting a significant hike. You can check your credit score and read your credit report for free within minutes using