Yes it can. Credit is a factor with many companies. Insurance companies give an insurance score. It is different than a credit score. A variety of factors including credit are considered. Some companies still don;t do credit, but usually you will pay a higher rate. The insurance company reasoning is that, by their statistics and experience, a person with bad credit statistically is a higher risk. I know that is not always the case but unfortunately, agree or not (and I don't like it either) that is the facts.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
A great many auto insurance companies have been using credit history as an underwriting factor for several years now. Naturally, this is coupled with other factors such as age of the driver (s), driving history, loss experience, the type and age of the vehicale(s), registration address etc. Various discounts may also apply that can also affect the final pricing.
The credit discount varies by state and insurance company. Check with the Department of Insurance (DOI) with your state to see if it is allowed.
Typically each insurance company has their own formula for the discount, and it is considered proprietary information. However, to get a better understanding of factors with your credit score, you should go to www.myfico.com.
Although insurance companies aren't looking at your actual score like when you apply for a car loan, many take the following information into consideration when designing their discounting formula:
1. amounts owed
2. payment history
3. credit mix
4. length of credit history
5. new credit
Whether you like it or not, this type of discounting is also used frequently for homeowners insurance too and can add up to big savings over time.
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Typically each insurance company has their own formula for the discount, and it is considered proprietary information. However, to get a better understanding of factors with your credit score, you should go to www.myfico.com.
Although insurance companies aren't looking at your actual score like when you apply for a car loan, many take the following information into consideration when designing their discounting formula:
1. amounts owed
2. payment history
3. credit mix
4. length of credit history
5. new credit
Whether you like it or not, this type of discounting is also used frequently for homeowners insurance too and can add up to big savings over time.