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3 Credit Factors that might Affect Your Auto & Homeowner's Insurance Premiums
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end up paying from $68 to more than $500 more annually in comparison to those who have excellent scores. Moreover, it's important to know that your credit score is not the only factor that determines your premiums. According to Experian, if you live in Hawaii, California, Massachusetts or Michigan, auto insurers can't even use your credit information to determine auto insurance premium.
What matters most for your premiums
Insurance companies say that a person's credit scores help them to better predict their risk of insurance losses. While a score evaluation can seem like a broad judgment, there are often certain factors auto insurers will look at when determining your monthly premium, such as:
(BPT) - People think of their credit scores when measuring their "creditworthiness," like when they're looking to take out a loan, buy a home or open a new credit card. But did you know your insurance credit score can affect your auto insurance premiums too? Before auto insurers take you on as a policyholder, they might use your credit score as an indicator to evaluate how likely you are to file a claim. If your score doesn't fit within their standards, you may get charged a higher premium. On the other hand, some insurance scores are loss ratio models, so they actually rank you based on the probability that you'll be a more profitable customer. According to Consumer Reports, the difference in auto insurance premiums related to credit scores can be significant. Drivers who only have "good" scores can