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Car Insurance and Your Credit Score Fargo ND

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.

Songstad- Lyle E - State Farm Insurance Agent
(701) 235-0123
1401 32nd Street Southwest
Fargo, ND
 
Farmers Insurance Group
(701) 235-6409
1815 S University Dr
Fargo, ND
 
Vaaler Insurance
(701) 298-8200
3137 32nd Avenue South
Fargo, ND
 
Hanson- Theodore L
(701) 237-5877
657 4th Ave N
Fargo, ND
 
Stirling- Michael R - State Farm Insurance Agent
(701) 232-5585
7 10th Street North
Fargo, ND
 
Conzemius- Michael J
(701) 293-5464
1313 14th Ave S
Fargo, ND
 
Bob Roesler Agency
(701) 271-6902
15 Broadway
Fargo, ND
 
Lykken- Dean W - State Farm Insurance Agent
(701) 280-2811
1202 23rd Street South
Fargo, ND
 
American Family Insurance
(701) 237-3202
650 1st Avenue North
Fargo, ND
 
Blue Cross Blue Shield of Minnesota Customer Srvce - Group Sales
(218) 233-7487
2405 8th Street South Suite 200
Moorhead, MN
 

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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