Did you know that your car insurance is determined by your credit report?

Question

Insurance companies set our premium rates according to our credit report. Many of these reports are inaccurate or not updated.

Answer 1

I think there are a lot of factors that determine your insurance rate...driving record, age (more expensive if you're under 25), the type of driving you do (commuting, city traffic, country roads etc.) and where you live.

I think home owner's insurance might depend on credit rating since we have neighbors who have the same insurance as we do and have a poor credit rating and pay more than we do although our house is worth more.

Answer 2

As it should be.

Companies are in the business of making money.  They are not required to make our lives easier.  (That is something we have to do ourselves.)

Since credit scores help the company determine how responsible you are, expect the company to be ethical.  They must protect the owners of the company from bad investments.  Placing insurance on a high-risk person should require they receive additional compensation.

It is fair to the company.

It is fair to the responsible person.

And, it is fair even to the irresponsible person...who gets what she deserves.

Answer 3

The answer may vary by person.It would be a good idea to hear some of them and try to choose the best one.Here is a good one.http://creditreport.expertsupport.info/f...

Answer 4

Actually it depends on the state you live in.  This is not true for all states.

Answer 5

that is one factor, yes

Answer 6

I wish that was true, Cause im paying too much for my car insurance .

Answer 7

I know for a fact that Progressive has a class action law suit filed against them for this. Some people have had their insurance cancelled due to their credit reports and others see their policies increase every year due to this as well.

If you want some more information, I would check out...

http://www.surveyland.org/jump.php?link=...

Take care.

Answer 8

Not credit report, but credit SCORE.  

Yes, I knew that.  Thanks . . .  there's a direct corrolation between low credit score, and claims filed/dollars paid out.

Just like there's a direct corrolation between claims and age (think, 16 year olds).

Answer 9

Yes, creditworthiness is indeed one factor.  That is just one more reason why everyone should periodically review their credit reports.

Answer 10

False.