What does my credit rating have to do with purchasing insurance?

Everyone knows that credit scores are an evaluation of your payment history on a variety of consumer debt items, like your home, credit cards, auto loans, etc  Credit scores are also used for a variety of other purposes, such as finding a place to live, getting a cell phone, and, most recently, buying insurance.

Insurance companies have found a direct correlation betwone’sne’s credit score and likelihood of filing an insurance claim at some point in the future  According to the actuarial tables and statistics the lower your credit score, the more likely you are to file a claim  So insurance companies are knowing using credit scores to generate “n “insurance sc”re” as part of the underwriting process  Your insurance score plays a significant role in determining the premiums charged by your homeowners and auto insurance companies.

Therefore, a solid credit history can go a long way to decreasing your insurance premiums. We recommend checking your credit score regularly and requesting that any errors you discover be corrected immediately.