-------------------------------
“Ask Jeff" is a weekly post made on the RyanAgency.com Blog.
Submit an insurance-related question to “Ask Jeff”.
-------------------------------
Get in touch
555-555-5555
mymail@mailservice.com
Are auto insurance rates determined by credit score instead of driving record?
Apr 16, 2016
Auto insurance rates are determined by BOTH Credit Score AND Driving Record in addition to other important factors. An "Insurance Score" [1](similar to credit score) is the what the insurance industry uses in the rating of home and auto insurance. In states where insurance scores are allowed, it is a significant factor in the determining what you pay for auto Continue Reading
Auto insurance rates are determined by BOTH Credit Score AND Driving Record in addition to other important factors.
An "Insurance Score" [1](similar to credit score) is the what the insurance industry uses in the rating of home and auto insurance. In states where insurance scores are allowed, it is a significant factor in the determining what you pay for auto insurance.
Most companies use a complex formula that combines a person's Insurance Score along with their driving record and other factors to determine your final rate. Your insurance score is a large factor in determining your base rate. [2]
Is having good credit better than having a good driving record?
Each company has unique rating schemes that will weigh factors differently.
However, it is my experience that having great credit (or insurance score) with a fair driving record is better than have a fair insurance score and a great driving record. So, on balance, a great insurance score is better than a great driving record.
In order to get the best insurance rates possible, strive to improve both your insurance score and driving record. The following link provides more information on strategies to reduce your car insurance premiums.
Best of luck with improving your insurance score, driving record and lowering your car insurance rates!
Footnotes
[1] Credit-Based Insurance Scores
[2] investopedia.comHow An Insurance Company Determines Your Premiums | Investopedia
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
Personal injury is different from bodily injury and is treated as such by homeowners' liability forms. Learn more>
The purpose and importance of annoying insurance audits for determining the appropriate rate for your business
What does Bait-and-Switch have to do with insurance? And why has it recently been in the news?
The insurance landscape is currently facing unprecedented challenges. At The Ryan Agency, with over 60 years of service to our community, we understand that this might be the toughest insurance market yet.
When your car is hit while parked and unattended, it's important to know your options. Here are some steps you can take to protect yourself and get your car repaired.
Understanding Insurance Responsibility After an Accident: Who Pays for What? Delve into the intricacies of insurance responses when accidents occur.
Discover the real history of New York's Supplemental Spousal Liability Insurance Coverage and its Impact Today.
As electric bikes soar in popularity, questions about insuring them become essential. Discover the options for coverage and how E-Bike insurance differs from traditional policies. Get expert advice on the best ways to protect your investment.
Unlock the Secret to Employee Classification: Protect Your Business, Avoid Costly Consequences. Discover the key to proper classification and safeguard your future.
Final article in a 3 part series about cyber security insurance for business.
