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Car Insurance and Your Credit Score Salem MA

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
225 Franklin St
Boston, MA
Description
Safe Drivers Save 45% or more on Auto Insurance. Call Allstate Now!
Phone Hours
SUN - SAT 12:00AM - 12:00AM

Barry S Logue Insurance Agency
(978) 922-2310
7A Dodge Street
Beverly, MA
 
Thomas St Jean Insurance
(978) 531-8053
106 Lynn Street
Peabody, MA
 
William J Lynch Insurance Agency- Inc.
(978) 750-0044
44 Maple Street Suite 2
Danvers, MA
 
Columbia Insurance Agency Inc
(781) 598-5000
1 Munroe Street
Lynn, MA
 
Knight Thos B & Co Ins Agcy Inc
(978) 744-6500
27 Congress St
Salem, MA
 
MB Modugno Insurance Agency
(781) 595-6758
38 Brookline St
Lynn, MA
 
Circle Insurance Agency Inc
(978) 777-7030
247 Newbury Street
Danvers, MA
 
Liberty Mutual Group - Personal Claims
(978) 774-0300
222 Rosewood Drive
Danvers, MA
 
Herschede Insurance Agency
(978) 750-1837
2 McDewell Avenue
Danvers, MA
 

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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