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Car Insurance and Your Credit Score Booneville MS

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.

Tri-State Insurance
(662) 728-0092
208 South Second Street
Booneville, MS
 
Cornerstone Group
(662) 728-4477
1108 N 2nd St
Booneville, MS
 
Edge Karen Insurance
(662) 720-1150
405 West College Street
Booneville, MS
 
State Farm Insurance
(662) 728-9595
307 West College Street
Booneville, MS
 
Cornerstone Insurance & Financial Inc
(662) 365-1277
111 West Clayton Street
Baldwyn, MS
 
McVey Hilda Insurance
(662) 720-1150
405 West College Street
Booneville, MS
 
Saylors Manfred Insurance
(662) 728-9595
307 West College Street
Booneville, MS
 
Transportation Insurance Services Inc
(662) 720-1150
405 West College Street
Booneville, MS
 
Windham Insurance Agency
(662) 365-5238
307 Highway 45 North
Baldwyn, MS
 
Logan Sr- Robert C
(662) 365-8694
611 Grisham St
Baldwyn, MS
 

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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