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Car Insurance and Your Credit Score Oskaloosa 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.

Walston- Randall L
(641) 673-4462
301 N 1st St
Oskaloosa, IA
 
Dixon- Gary L - State Farm Insurance Agent
(641) 672-2160
1000 South 11th Street
Oskaloosa, IA
 
State Farm Insurance - Randy Walston Agent
(641) 673-5395
1002 South 11th Street
Oskaloosa, IA
 
State Farm Insurance Office
(641) 932-7612
6677 201st Street
Albia, IA
 
Schiebout- Francis G - State Farm Insurance Agent
(641) 628-2239
713 Franklin Street
Pella, IA
 
Heil Insurance Agency Inc
(641) 673-6143
801 A Avenue East
Oskaloosa, IA
 
Richards- Pat
(641) 673-0088
309 1st Ave E
Oskaloosa, IA
 
Chapman- James E
(641) 932-7950
3 Benton Ave E
Albia, IA
 
Bussey Insurance Service
(641) 944-5313
404 Merrill Street
Bussey, IA
 
Van Wyk- Kevin L
(641) 628-2550
703 Main St
Pella, 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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