Many auto insurance companies utilize consumer credit information and specialized algorithms designed to predict the likelihood of future claims. An auto insurance score may use both consumer credit, demographic data, driving records, and past claims information to predict future claims. These scores are then used to determine what premium rate to charge.
People expected to make fewer claims pay less, and those expected to make more claims pay a higher rate.
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People expected to make fewer claims pay less, and those expected to make more claims pay a higher rate.