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Car Insurance and Your Credit Score Columbus NE

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.

Farm Bureau Insurance
(402) 562-7777
2921 23rd Street
Columbus, NE
 
Sanders- Barbara L - State Farm Insurance Agent
(402) 564-8581
3220 19th Street
Columbus, NE
 
Bankers Life and Casualty CO
(402) 493-4330
2460 18th Avenue
Columbus, NE
 
Stempek- Shelley - State Farm Insurance Agent
(402) 564-5512
1570 38th Avenue
Columbus, NE
 
Gateway Realty-Gmac Real Estate
(402) 564-1457
1668 33rd Avenue
Columbus, NE
 
Michael Brittenham Ins Agcy In - State Farm Insurance Agent
(402) 564-4300
2320 23rd Street Ste A
Columbus, NE
 
Farm Bureau
(402) 564-0558
3309 31st Street
Columbus, NE
 
State Farm Insurance Agent
(402) 564-3922
1570 38th Avenue
Columbus, NE
 
Davidson- Roland D - State Farm Insurance Agent
(402) 564-5512
1570 38th Avenue
Columbus, NE
 
Eberhart Jack
(402) 564-0558
3309 31st Street
Columbus, NE
 

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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