Why do insurance companies need my credit score?

What are credit-based insurance scores?

Credit-based insurance scores are generally based on credit reports from one of the main credit bureaus. These scores are used to help insurers decide how likely it is that you will file a claim that costs them more than you pay in premiums.

Main reasons an insurer may need your credit score

When car insurance companies are processing your application, they look at several factors when deciding what your rates should be. These can include your location, the kind of car you drive, and your driving history. It’s also common for car insurance companies to look at your credit score or credit-based insurance score when your rates are being calculated. Some drivers with poor credit have found themselves paying more for car insurance than motorists with better scores.

Is there anything I can do if my rates have been affected by my credit score?

If you believe that your credit score has negatively impacted your insurance rates, you could ask your insurer to tell you which credit bureau gave them the information. If you suspect you have been affected by inaccurate information, you should be able to get this corrected.

How can I improve my credit-based insurance score?

Steps that you can take to improve your credit score and hopefully reduce your insurance premiums include making all credit card and loan repayments on time. You should also keep your use of credit below 30%. It may be effective to get a credit card if you don’t already have one, but to keep actual spending on it to a minimum. If you do improve your credit score, get in touch with your insurance company before your policy is due to renew and ask them if they can re-run a credit check.

Who can help me get a great deal on insurance in Indiana?

Crowel is here to help if you’re ready to get a better deal on insurance including auto insurance. At Crowel, we have been a leading player in our field for almost 60 years and always go the extra mile to bring you the best deals on insurance we possibly can. As we are independent and impartial insurance specialists, we are not tied to any particular provider. We are purely motivated by the concept of bringing you the best cover for your specific needs. We also keep our doors open outside of typical office hours so you can come and see us in person without having to take time off work.

Contact us

Now is the time to get in touch if you are looking for a new deal on your auto insurance. You can reach us today by giving us a call, sending a text, or completing the form on our site.