Credit history revealed as most important factor for insurance companies
Insurance companies are digging deeper to determine what they can charge insured drivers. Consumer Reports recently finished a two-year investigation of more than two billion insurance quotes from companies across the country.
Posted — Updated"That car insurance credit score is different from your FICO score, and how it figures into your premiums varies depending on the insurer and your state,” said Consumer Reports money editor, Margot Gilman. “Companies use it to predict not if you'll be a good driver but whether you'll file a claim."
"Insurance premiums in those three states are based much more on how people actually drive, which we think is much more fair,” Gilman said. “But it does mean that if you have an accident in those states, your rates could go up higher than elsewhere."
Consumer Reports suggested correcting any inaccuracies with credit bureaus—Transunion, Experian or Equifax—if insurance companies tag insured drivers with low scores.
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