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Do credit scores affect premiums?


Yes they do. According to regulatory associations, there is a direct correlation between credit scores and individuals getting into accidents, and cancellation policies due to non-payment. Therefore, premiums are higher for lower credit scores.

Other Factors:In addition to Insurance Scores, there are other, more obvious factors used to determine your final rate including:
  • Where you live,
  • Year-Make and Model of Car
  • Driving Record
  • Claims History
  • Age and Sex, etc.
Your agent and insurance company aren't going to see specific information detailing what you owe or to whom, but they are going to see a version of your credit score and it significantly impacts how much you pay for insurance. Being responsible with credit will reward you with lower insurance costs!


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