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Car Insurance and Your Credit Score Rutland VT

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.

Ernest C Soto Ins Agcy Inc - State Farm Insurance Agent
(802) 747-7283
82 Woodstock Avenue
Rutland, VT
 
Donald E. Steere Agency
(802) 775-2746
607 U S Route 4 East
Rutland, VT
 
Ross Insurance and Company
(802) 775-4477
191 Pearl Street
Rutland, VT
 
Egan & Nelson Agency
(802) 773-0368
24 1/2 Center Street
Rutland, VT
 
Hanford R. Davis Agency
(802) 247-3013
24 Park St
Brandon, VT
 
Rabideau Agency
(802) 775-1628
40 Woodstock Ave
Rutland, VT
 
Allstate Insurance Companies
(802) 775-1609
240 South Main Street
Rutland, VT
 
Decandio- Kenneth
(802) 747-7975
56 Allen St
Rutland, VT
 
Mid Vermont Ins Agcy Inc
(802) 287-2324
74 Depot St
Poultney, VT
 
Poulos Insurance Inc
(802) 287-2324
74 Depot St
Poultney, VT
 

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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