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Car Insurance and Your Credit Score Pikeville 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.

Stevens Insurance Agency
(606) 432-7600
557 Hambley Boulevard
Pikeville, KY
 
Chrisman Insurance Agency Inc
(606) 437-4086
157 Main Street
Pikeville, KY
 
Johnson-Newsom Agency Inc
(606) 754-8111
165 Main Street
Elkhorn City, KY
 
Olive- Louie
(304) 235-1990
117 E 3rd Ave
Williamson, WV
 
Slater- C Michael - State Farm Insurance Agent
(304) 235-3290
22 West 2nd Avenue
Williamson, WV
 
Jennifer C Reynolds Ins Ag Inc - State Farm Insurance Agent
(606) 432-5230
513 North Mayo Trail
Pikeville, KY
 
Maynard Insurance Agency
(606) 478-9500
USHighway 23
Harold, KY
 
Allstate Insurance Companies
(304) 235-1809
1802 West 3rd Avenue
Williamson, WV
 
Doyle Sam Insurance
(606) 886-8000
291 North Lake Drive
Prestonsburg, KY
 
State Farm Insurance
(606) 886-8000
291 North Lake Drive
Prestonsburg, 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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