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Car Insurance and Your Credit Score Shelbyville TN

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.

Direct General Insurance Agency Inc
(931) 680-0941
1121 North Main Street
Shelbyville, TN
 
J & R Insurance and Bonds
(931) 684-1014
217 South Main Street
Shelbyville, TN
 
State Farm Insurance Companies - Agent- Ralph T Allen
(931) 684-2855
217 Lane Parkway
Shelbyville, TN
 
Tracy Jim Insurance Agency
(931) 684-8589
505 North Main Street
Shelbyville, TN
 
Gardner Iii- George R
(931) 685-2080
106 Elm St
Shelbyville, TN
 
Cowan H B & CO
(931) 684-3323
710 North Brittain Street
Shelbyville, TN
 
Jim D. Tracy Agency
(931) 684-8589
505 N Main St
Shelbyville, TN
 
Insell- Deborah S - State Farm Insurance Agent
(931) 684-5274
923 North Main Street
Shelbyville, TN
 
Allen- Ralph T - State Farm Insurance Agent
(931) 684-6785
217 Lane Parkway
Shelbyville, TN
 
Neese & Associates Insurance
(931) 684-4380
1708 North Main Street
Shelbyville, TN
 

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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