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Car Insurance and Your Credit Score Bedford IN

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.

Thomas Insurance Services Inc
(812) 278-9505
1701 16th Street
Bedford, IN
 
Eckert- Allan G
(812) 275-5207
1427 J St
Bedford, IN
 
Barger- J Frederick
(812) 275-7845
1319 6th St
Bedford, IN
 
American Family Insurance
(812) 278-7300
619 Lincoln Avenue
Bedford, IN
 
Kidwell- Larry G
(812) 275-3811
1237 22nd St
Bedford, IN
 
Allstate Insurance Companies
(812) 277-9681
717 Lincoln Avenue
Bedford, IN
 
Bankers Life & Casualty
(812) 279-0053
Butterfly Lane
Bedford, IN
 
Torphy- David M
(812) 279-6601
1625 O St
Bedford, IN
 
Hitchcock Agency- Inc.
(812) 279-4434
501 Lincoln Ave
Bedford, IN
 
Insurance Network
(812) 275-7995
621 X Street
Bedford, IN
 

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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