When an auto insurance company looks into your credit what are they looking for?

Question

When they look into your credit what are they looking for? Just your credit score? or can they see your whole report? Like your credit card debt?

Answer 1

no, they cannot see your actual report.  it is looking to see your credit range.  the higher the credit the better "tier" you get put into , which translates into lower rates.

Answer 2

All three of these are plausible explanations, but there IS another side to the story. When you pay an insurance premium, the insurance is basically "fronting" you the insurance protection, which is granted on the condition that future premiums will be paid on a timely basis. I am also an insurance agent, although I do freely admit to not being an auto or P and C agent. Your credit score is used by the insurance company to determine whether you are likely to pay premiums ontime, and if it doesn't show that, I'd wager money that this information is used to stack you in a higher rate bracket which will force you to pay more money earlier in the policy life, thus easing them of the responsibility for having to "sweat out" your payments. Before all the "down thumbers" come out, please reflect upon all the premium finance companies in existence in the US

Amy: hate to be disagreeable, but if you find out how many accounts I have open, how slowly or punctually I pay my accounts, account balances, etc., you have effectively gotten my credit information, even if you don't have "the report". Your explanation sounds suspiciously like another I heard a few years ago...."I did not have s*x with that woman.........." etc etc. If it smells like horse manure, looks like horse manure and feels like horse manure, believe me, it's horse manure. Farmers is no better or worse than anyone else.

Answer 3

Mainly your credit scores.  Credit history has been found to be statistically related to claims rates - people with poor credit management habits also have higher accident rates.

Answer 4

Farmers does not see your report, we only get a letter rating.  A-Z I and N being incomplete.  We do not see anything on your credit report, we can only see why you got the rating you got, too many accounts open, late payments, or not enough credit history but we do not get any elaboration on any of the explanations.

Answer 5

statisitcally the poorer your credit the higher risk one is to filing a claim. The more a company pays out in claims then the more money they have to charge their customers. So therefore the better your credit the less likely you are  to file a claim therefor the cheaper your price.