Auto Insurance Score How Your Credit Can Cost You on Car Insurance
Auto Insurance Score - How Your Credit Can Cost You on Car Insurance Skip to content
Motley Fool Stock Advisor recommendations have an average return of 397%. For $79 (or just $1.52 per week), join more than 1 million members and don't miss their upcoming stock picks. 30 day money-back guarantee. Sign Up Now Studies show that there is a correlation between credit behavior and likelihood of filing a claim. Basically, those with better credit tend to file fewer claims, so their insurance is priced down. On the other hand, those with worse credit tend to file more claims and be more expensive to insure, so their insurance is priced up. As you can see, the effects of a bad credit score seeps into everyday life, including your ability to get favorable mortgages, loans, and insurance. Whether or not this is a fair practice is somewhat of a moot point, unfortunately. The majority of insurers in most states use auto insurance scores to help determine consumers’ insurance rates. The real question is, what should consumers do?
What do you want to do br with money
Popular Searches
Learn more about your money
Make Money
You need it. Learn how to make it. ExploreManage Money
You've got it. Learn what to do with it. ExploreSave Money
You have it. Make sure you have some later too. ExploreSpend Money
You're spending it. Get the most for it. ExploreBorrow Money
You're borrowing it. Do it wisely. ExploreProtect Money
You don't want to lose it. Learn how to keep it safe. ExploreInvest Money
You're saving it. Now put it to work for your future. ExploreCategories
About us
Find us
Close menuWhat do you want to do br with money
Popular Searches
Learn more about your money
Make Money
You need it. Learn how to make it. ExploreManage Money
You've got it. Learn what to do with it. ExploreSave Money
You have it. Make sure you have some later too. ExploreSpend Money
You're spending it. Get the most for it. ExploreBorrow Money
You're borrowing it. Do it wisely. ExploreProtect Money
You don't want to lose it. Learn how to keep it safe. ExploreInvest Money
You're saving it. Now put it to work for your future. ExploreCategories
About us
Find us
Close menu Advertiser Disclosure Advertiser Disclosure: The credit card and banking offers that appear on this site are from credit card companies and banks from which MoneyCrashers.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages. MoneyCrashers.com does not include all banks, credit card companies or all available credit card offers, although best efforts are made to include a comprehensive list of offers regardless of compensation. Advertiser partners include American Express, Chase, U.S. Bank, and Barclaycard, among others. Protect Money InsuranceHow Your Credit History Can Cost You on Car Insurance – Get Your Auto Insurance Score
By Guest Author Date November 23, 2021FEATURED PROMOTION
Auto insurance scores are finally starting to share some of the limelight with credit scores. Consumers are learning more about what this other credit scoring model is and how it could potentially raise or lower car insurance costs. So what exactly is an auto insurance score? Here’s the lowdown on how auto insurance scores work, how “fair” are they, and what you should do about yours to improve your situation.Why Does My Credit Affect How Much I Pay For Auto Insurance
That’s the question most people wonder about auto insurance scores: how on earth is their credit rating related to their car insurance? An auto insurance score is calculated from a formula that uses information from your credit history and credit report, similar to a credit score model. The same way that credit scores measure your creditworthiness in the eyes of lenders, your auto insurance score measures your riskiness to insurers and, more specifically, your likelihood to file a claim. Using your credit information plugged into an auto insurance score, insurers will price your auto insurance premiums up or down according to how risky you are. If you’re not familiar with the various factors, here’s what hurts and affects your credit score.Motley Fool Stock Advisor recommendations have an average return of 397%. For $79 (or just $1.52 per week), join more than 1 million members and don't miss their upcoming stock picks. 30 day money-back guarantee. Sign Up Now Studies show that there is a correlation between credit behavior and likelihood of filing a claim. Basically, those with better credit tend to file fewer claims, so their insurance is priced down. On the other hand, those with worse credit tend to file more claims and be more expensive to insure, so their insurance is priced up. As you can see, the effects of a bad credit score seeps into everyday life, including your ability to get favorable mortgages, loans, and insurance. Whether or not this is a fair practice is somewhat of a moot point, unfortunately. The majority of insurers in most states use auto insurance scores to help determine consumers’ insurance rates. The real question is, what should consumers do?