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Car Insurance and Your Credit Score Auburn AL

Your credit score is used by car insurance companies to determine what you pay. It's important to know your score before you shop for insurance. It's easily possible that someone who has never had an accident and never filed a claim could pay up to three times as much for insurance as another similar customer with an identical vehicle โ€” because of differences in credit scores.

Jenkins Frank W Jr Insurance
(334) 821-8541
1141 Opelika Road
Auburn, AL
 
Powell- Sara Kathryn - State Farm Insurance Agent
(334) 501-8245
2408 East University Drive Ste 104
Auburn, AL
 
Clowdus- Phillip W - State Farm Insurance Agent
(334) 887-8541
1141 Opelika Road
Auburn, AL
 
State Farm Insurance
(334) 745-6303
907 2nd Avenue Suite A
Opelika, AL
 
Holt Ricky Insurance
(334) 741-0573
1451 Gateway Drive
Opelika, AL
 
McGhee- Larry N
(334) 821-3793
818 E Glenn Ave
Auburn, AL
 
Jones Tim Insurance
(334) 826-6888
124 North Dean Road
Auburn, AL
 
University Agency Inc
(334) 887-6569
611 East Glenn Avenue Suite B
Auburn, AL
 
Bryan Tom Insurance
(334) 749-5777
1819 Pepperell Parkway
Opelika, AL
 
Sheehan Rusty
(334) 745-6303
907 2nd Avenue
Opelika, AL
 

Car Insurance and Your Credit Score

Many car insurance companies now use your credit score to determine what you pay. Why? Because they say studies show that customers with poor credit histories are more likely to be in accidents and file claims. They claim that customers with bad scores are higher risks and it's only fair that those customers pay more for their policies.

Insurance regulations in many states now allow this practice, although regulatory administrators admit they don't understand the connection between credit scores and car accident claims.

It's easily possible that someone who has never had an accident and never filed a claim could pay up to three times as much for insurance as another similar customer with an identical vehicle โ€” because of differences in credit scores.

How does it work?
Insurance companies use a secret formula to calculate a customer's "insurance score" that is not quite the same as the more familiar FICO score from credit reporting agencies such as , Transunion, and Experian. Although the score itself may be different, the end result will nearly always be the same. If a customer has a poor FICO score, he'll almost certainly have a poor insurance score.

Companies such as Allstate charge poor-credit customers as much as three times the rate for customers with excellent credit. In fact, credit history is becoming one of the major factors, if not the major factor, in determining insurance rates.

Insurance companies want ...

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