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Car Insurance and Your Credit Score Mankato MN

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.

Hasse Steven A Insurance
(507) 625-6671
1235 East Madison Avenue
Mankato, MN
 
Bristol- Lonnie D - State Farm Insurance Agent
(507) 345-3663
870 East Madison Avenue
Mankato, MN
 
Preston J Doyle Ins Agency Inc
(507) 388-6281
1728 E Madison Ave
Mankato, MN
 
Aaron Hatanpa Ins Agcy Inc - State Farm Insurance Agent
(507) 345-3606
1215 North Riverfront Drive Ste C
Mankato, MN
 
Oliver Michael Insurance Agency
(507) 386-0808
2144 Hoffman Road
Mankato, MN
 
Nelson Marlow W.
(507) 345-3606
3030 3rd Ave
Mankato, MN
 
Blue Cross Blue Shield of Minnesota
(507) 345-3317
302 North Riverfront Drive
Mankato, MN
 
Sexton Mark Insurance Agency
(507) 625-6900
1400 East Madison Avenue Suite 344
Mankato, MN
 
Community Insurance
(507) 385-4485
1057 East Madison Avenue
Mankato, MN
 
American Family Insurance CO of Madison WISC
(507) 387-5745
338 Belgrade Avenue
North Mankato, 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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