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Car Insurance and Your Credit Score London KY

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.

McDonald Ins Agcy Inc - State Farm Insurance Agent
(606) 877-3390
809 West 5th Street
London, KY
 
Patton-Chestnut-Binder Insurance Agency
(606) 864-5171
625 South Main Street
London, KY
 
New York Life
(606) 862-6577
401 South Broad Street
London, KY
 
Dell Sams Insurance
(606) 528-8120
109 North Commonwealth Avenue
Corbin, KY
 
Insurance Marketing Group
(606) 523-0881
301 US Hwy 25 W
Corbin, KY
 
Shelter Insurance
(606) 864-0997
1789 North Main Street
London, KY
 
Phelps- Judy T - State Farm Insurance Agent
(606) 864-4703
715 South Main Street
London, KY
 
Allstate Insurance Companies
(606) 864-0997
1789 North Main Street
London, KY
 
Curt Wyatt Insurance Inc
(606) 528-4933
314 North Main Street
Corbin, KY
 
Blair- Thomas D - State Farm Insurance Agent
(606) 528-4696
515 Master Street
Corbin, KY
 

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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