Credit And Risk
-
Insurers claim that studies show a correlation between your history of credit use and your risk factors as a driver. Therefore they say that if they access your credit report and build up what's known as an insurance score from the information, their underwriting process can be more thorough.
Insurance Score
-
The insurance company does not simply pull your credit score. It uses the information in your credit report to generate its own scoring. This is usually done by a proprietary system, and auto insurance companies will not let you know what your insurance score is, or why you scored well or badly.
Other Risk Factors
-
Your credit history is just one among many factors that will go toward deciding your insurance premium. Where you live, what kind of vehicle you drive, your age, gender and driving history are all very important --- you may be able to make up for your bad credit in other areas.
Extent
-
According to the Insurance Information Institute, drivers with poor credit histories make claims on auto insurance 40 percent more frequently than drivers with good credit. Compared with another driver whose profile and risk factors are identical to yours, but who has perfect credit, you may pay between 20 percent and 50 percent more for insurance.
0 comments:
Post a Comment