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Car Insurance and Your Credit Score Grand Forks 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.

Allstate Insurance Companies
(701) 746-5410
1425 South Columbia Road
Grand Forks, ND
 
Randy Fenley Ins Agency INC - State Farm Insurance Agent
(701) 772-5684
2750 South 26th Street Ste A
Grand Forks, ND
 
State Farm Insurance Agencies - Peterson Wayne F CLU
(701) 772-5987
2100 South Columbia Road
Grand Forks, ND
 
Plaza Insurance Agency Inc
(701) 775-3915
1726 South Washington Street
Grand Forks, ND
 
Opdahl- Sharon L
(701) 746-0495
2534 17th Ave S
Grand Forks, ND
 
Kouba- Kevin
(701) 772-4813
724 N Washington St
Grand Forks, ND
 
State Farm Insurance Agencies
(701) 772-5191
1521 24th Avenue South
Grand Forks, ND
 
Kouba- Kevin E
(701) 787-8811
724 N Washington St
Grand Forks, ND
 
Mittelsteadt Rod Insurance Agency
(701) 775-9280
2305 South Washington Street
Grand Forks, ND
 
George E Wogaman Agency Incorporated
(701) 772-7108
2612 Gateway Drive
Grand Forks, ND
 

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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