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Car Insurance and Your Credit Score South Sioux City NE

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
826 S Cecelia St
Sioux City, IA
Description
Safe Drivers Save 45% or more on Auto Insurance. Call Allstate Now!
Phone Hours
SUN - SAT 12:00AM - 12:00AM

Northeast Nebraska Insurance Agency Inc
(402) 494-1356
2021 Dakota Avenue
South Sioux City, NE
 
Thompson- William W - State Farm Insurance Agent
(712) 202-0022
3815 Stadium Drive
Sioux City, IA
 
Rehan- Robert G
(712) 274-2237
3450 S Lakeport St Ste B
Sioux City, IA
 
Schemmel- Marvin J - State Farm Insurance Agent
(712) 274-0014
4300 South Lakeport Street Ste 102
Sioux City, IA
 
Yaneff- Thomas P - State Farm Insurance Agent
(402) 494-1949
1000 West 29th Street Ste 216
South Sioux City, NE
 
State Farm Insurance Claim Office
(712) 274-4100
4300 South Lakeport Street
Sioux City, IA
 
Wieck- Ronald L
(712) 276-0313
920 Morningside Ave
Sioux City, IA
 
Grandy-Pratt Co
(712) 252-4026
4280 Sergeant Rd
Sioux City, IA
 
Winkel- Derek N
(712) 202-0017
4127 Gordon Dr
Sioux City, IA
 

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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