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Car Insurance and Your Credit Score Mason City IA

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 - Brian Randall
(641) 316-3164
471 S Illinois Ave.
Mason City, IA
Description
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Kelly- Richard D
(641) 423-5620
525 S Washington Ave
Mason City, IA
 
Haines Insurance Inc
(641) 423-9000
408 South Monroe Avenue
Mason City, IA
 
Marquis- Kristy L - State Farm Insurance Agent
(641) 423-7930
634 South Monroe Avenue
Mason City, IA
 
Miller- Garry L - State Farm Insurance Agent
(641) 357-8292
220 US Highway 18 West
Clear Lake, IA
 
Vacek- Kenneth A
(641) 421-7424
595 S Illinois Ave
Mason City, IA
 
Farmers Insurance Group Rob Adams Agency
(641) 424-1230
202 1st Street Southeast Suite 204
Mason City, IA
 
Corcoran & Associates Inc
(641) 494-1814
15 1st Street Northeast
Mason City, IA
 
Thomas- Clinton M
(641) 423-7924
2790 4th St SW
Mason City, IA
 
American Family Insurance - Joel Secory Insurance
(641) 357-8168
Po Box 152
Clear Lake, IA
 

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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