Do all insurance companies use credit scores?

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asked Jun 23, 2019 in Credit by kotamalee (340 points)
Do all insurance companies use credit scores?

1 Answer

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answered Jun 23, 2019 by Shelde (49,390 points)
All insurance companies especially the larger insurance companies do use your credit score to decide what rates you are to pay for insurance.

Your credit score determines how good of a risk you are to the insurance company so the higher your credit score the less of a risk you are to the insurance company and as a result the less your insurance premiums will be.

The lower your credit score the higher you are a risk to the insurance company and the higher your insurance premiums are.

So having a good insurance score and good credit score is needed to get a good rate on your insurance.

Also having a low credit score may affect your ability to get some types of insurance such as auto insurance, homeowners insurance, renters insurance etc.

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