How Your Credit History Affects Your Auto And Home Insurance Premiums

Date Added: Jan 2010
Format: HTML

Many auto insurance companies, and an increasing number of home insurers, use your credit information, filtered through a formula to create an "Insurance risk score," to determine how likely you are to file a claim on an insurance policy. More than half of those insurers use that information to determine how much to charge you in premiums. Insurance risk scores are similar to credit risk scores (used by lenders to determine whether or not to approve a loan or line of credit) because both look at your credit information, but the two are not the same thing.