Pro Tip – Credit Scores and Auto Insurance Rates.

Insurance companies use credit-based insurance scores along with your driving history, claims history and other factors to establish eligibility for payment plans and to help determine insurance rates.

Decades of data shows that credit-based insurance scores can accurately predict accident potential. Statistical analysis of that data identifies that those with a low insurance score are more likely to file a claim. Those with higher scores tend to get into fewer accidents and cost insurance companies less than their lower-scoring counterparts.

The Federal Trade Commission undertook an independent study to understand the relationship between credit history and risk. Their study, like others before, found that credit-based insurance scores are effective predictors of risk.