Your Credit Report & Auto Insurance

Auto Insurance and My Credit Report you ask. What does my credit have to do with car insurance?

Credit Report usage by auto insurance companies base several assumptions on your credit report. They are not factual assumption (If you paid your bills last month isn't going to make you have a wreck) auto insurers instead use a scoring method to determine the likelihood of a claim.

Credit report scoring is based on past data of all drivers,auto insurance companies try to guess whether or not someone who didn't pay their bills will have a wreck.

You may like to know that there are movements in many states that want to disallow this type of practice.Until then, you are better informed to know you credit score.

See your credit report for free.
Know what your insurance company will know before you apply. Get Your Free Credit Report! or  Click Here For Your Instant Credit Score!


When you get your credit report or credit score and you find out that you rank low as compared to other people, you may have to price high risk auto insurance quotes. This type of car insurance is generally more expensive. Answer Financial been really good at finding the lowest priced auto insurance quotes possible in these circumstances. Sometimes, your credit won't affect your auto & car insurance rates. It depends on the insurance company. A very good reason to get as many auto insurance quotes from as many insurance companies as possible.

Credit Scores - How they are determined.

Using statistical information, your credit information is compared to the performance of consumers with similar profiles to yours.

A credit scoring system awards or subtracts points for various factors in the credit report to determine the score. The following information is considered:

    personal payment history
    amount of money you owe
    length of your credit history
   whether you have any new credit or debt
    mix of credit types you use

The credit score predicts the likelihood of certain insurance claims occurring.

This may sound unfair (us included) right now, it is the way that some insurance companies work. Being informed is the only recourse consumers have.

The best way to review your credit is to order a Free Credit Report.

This will allow you to see the report that is on file in your name at each of the three major credit reporting agencies (Equifax, Experian and TransUnion).

You will get a credit score based on the information in each report. These credit scores will be accompanied by written explanations, detailing the information used to compute each score.

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