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Car Insurance and Your Credit Score Paola KS

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 Auto Insurance
(888) 355-7971
315 E Main St
Gardner, KS
Description
Safe Drivers Save 45% or more on Auto Insurance. Call Allstate Now!
Phone Hours
SUN - SAT 12:00AM - 12:00AM

Farmers Insurance Group
(913) 294-5829
605 Baptiste Drive
Paola, KS
 
Progressive Insurance
(913) 377-3311
38210 State Line Road
Louisburg, KS
 
Farmers Insurance & Financial
(913) 837-8200
5 South Peoria Street
Louisburg, KS
 
Farmers Insurance
(913) 856-3816
235 East Main Street
Gardner, KS
 
Adkins- James U
(913) 294-5351
11 S Pearl St
Paola, KS
 
Adams- Marsha L
(913) 755-3370
1312 6th St
Osawatomie, KS
 
American Family Insurance Jeff Sears Agency
(913) 686-3399
119 South Madison Street
Spring Hill, KS
 
Shelter Insurance
(785) 883-2380
103 Main Street
Wellsville, KS
 
Oldham- Joseph D - State Farm Insurance Agent
(913) 856-6124
314 East Main Street
Gardner, KS
 

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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