According to a recent survey by Conning & Co., a Hartford, Connecticut-based insurance research firm, 92 percent of all insurance companies use credit information when underwriting new policies. In fact, credit history is becoming one of the major factors, if not the major factor, in determining insurance rates.
Did you know that even your car insurance is affected by your credit score? When it comes to insurance, providers say there may be a relationship between a person’s credit history and the possibility of filing a claim. According to the Insurance Information Institute (III), people with a lower credit score are more likely to file a claim than someone with a higher credit score.
Below is an actual table used by a major auto insurance company in determining rates for auto and homeowners insurance. *insurance score is reference to credit score range
|Insurance Score||Premier Discount|
|739 and Higher||30%|
|586 and Below||0%|