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Car Insurance and Your Credit Score Lincoln 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.

KUHL Insurance Agency Inc
(402) 475-2609
300 North 27th Street Suite B
Lincoln, NE
 
Dahlgren- Richard A - State Farm Insurance Agent
(402) 488-7855
221 South 66th Street
Lincoln, NE
 
Haberman- Robert J - State Farm Insurance Agent
(402) 483-7578
7121 O Street
Lincoln, NE
 
American Family Insurance Tim Stewart Agency Inc
(402) 489-6211
5615 O Street
Lincoln, NE
 
Allstate Insurance - Kris Rosenow
(402) 488-0955
4221 O St
Lincoln, NE
 
Hurlburt Daniel A III
(402) 434-0480
3325 A Street
Lincoln, NE
 
Forsyth Insurance Agency
(402) 483-7861
1265 South Cotner Boulevard
Lincoln, NE
 
Higgins- Beverly J - State Farm Insurance Agent
(402) 483-2838
123 South 84th Street Ste D
Lincoln, NE
 
Williams- Karen L - State Farm Insurance Agent
(402) 434-6050
233 North 48th Street Ste O
Lincoln, NE
 
Krikac- Vincon C - State Farm Insurance Agent
(402) 474-1173
1115 K Street Ste 102
Lincoln, 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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