What does credit have to do with insurance rates? I do not see the correlation.?

Answers:4   |   LastUpdateAt:2012-10-08 00:48:02  

Question
mouse
Asked at 2012-06-13 17:22:52
My credit is good, not the best and not horrible. But I have a ticket or an accident in my driving record. I have not had a ticket of at least 6 years. However, my rates are higher than another guy who has good credit, but has 2 fault in accidents and a speeding ticket . Besides draft and collision claims . I guess you do not see the image?
Answer1SalomeAnswered at 2012-06-15 11:59:39
Credit unfortunately not. What insurance companies figure though is that if you have less than perfect credit , then it is more likely to have a claim ... not fair, but that's what they use as criteria. Many employers will look for your credit card when you consider for employment as well. Again .. not fair, but that's what they do.
Answer2ameneAnswered at 2012-06-23 21:18:05
Well, it really does not compare to you and the other person. Does the company - is the same age different than yours , or marital status ? Do you have lower liability limits and higher deductibles ? Maybe your company is offering accident forgiveness . It could be anything . You can not really say that unless you have all the facts.

There is a correlation between credit and risk. However, occasionally there will be a terrible driver out there that manages to pay your bills on time and have a good score. This is probably the exception. That's why insurance companies , when allowed , using credit as something that helps them determine rates .
Answer3Maria ChiaraAnswered at 2012-09-06 10:45:07
Not only can bad credit raise insurance rates , you can make your life miserable in other ways . In addition to insurance companies , people or companies can request copies of your credit file when you go to use your credit information to extend credit to you , consider offering you a job, rent a place to live and determine child support payments . MedlinePlus MedlinePlus If you have bad credit , fix it. If you have bad credit , they do nothing to make it bad.
Answer4alessandriaAnswered at 2012-10-08 00:46:17
Insurers that if you owe a lot of money or are poor are more likely to try to scam them for cash.
Related Questions
1
  • Answer This Question:What does credit have to do with insurance rates? I do not see the correlation.?