Compare insurance companies for free.
Credit Rating and Insurance.
Consumers are starting to wonder what impact their credit rating has on the insurance premium they pay. Since each insurance company operates differently, there is no definite answer to this question. Most or all of the well-known insurance companies are using programs for quoting, rating and writing policies. The software used today enables direct links into consumer credit reports. Through research, insurance companies have found a correlation between consumers with lower credit ratings possibly being a higher risk for claims paid, then those with higher credit ratings. Similar to a speeding ticket on an MVR(Motor Vehicle Report), a lower credit score can affect your premium. The affect would not be just for auto policies but, auto, home, renters, life, health and possibly any other insurance type. One question that comes up regularly is “Will my credit score go down if the insurance company checks my rating?” When an insurance company checks consumer credit reports it isn’t the same as a credit check for a car or home loan. When you are applying for a loan or credit extension, you are affecting your score. When an insurance company views your rating it can show up as an inquiry depending on the company, but it usually will have no effect on your credit.
Prior to the use of credit reporting in insurance quoting, having a good driving record and a clean claim history was enough to get you into the low risk pool and guarantee you a reasonable premium payment. Today, credit impacts interest rates, loans, new hire decisions, and insurance. As insurance costs rise, maintaining financial responsibility has never been more important. Regardless if you have a low, average or high credit score, everyone will see an insurance premium that is unusually high at some point in their life. The only way to combat this is to competitively shop insurance companies. One insurer may offer very affordable auto premiums but their home premiums are through the roof. If you are seeing multiple quotes and options, you will be well informed upon decision time.
Prior to the use of credit reporting in insurance quoting, having a good driving record and a clean claim history was enough to get you into the low risk pool and guarantee you a reasonable premium payment. Today, credit impacts interest rates, loans, new hire decisions, and insurance. As insurance costs rise, maintaining financial responsibility has never been more important. Regardless if you have a low, average or high credit score, everyone will see an insurance premium that is unusually high at some point in their life. The only way to combat this is to competitively shop insurance companies. One insurer may offer very affordable auto premiums but their home premiums are through the roof. If you are seeing multiple quotes and options, you will be well informed upon decision time.
Select Insurance:
Site Map >
-
Insurance Quotes
Insurance Information
Special Topics
Company Information
© 2011 by QuoteClicker LLC. All rights reserved.