News of the Week 12-7-17
How Your Credit Affects Your Insurance
How is credit information used in determining my rate?
Most insurance companies calculate an insurance score based on information from your credit report. Each company will assign different values or weights to the information contained in your credit report, such as payment history, amounts owed or the number of applications for new credit lines. The total sum of these weights creates your insurance score. As a result, it is likely that some of your credit information helped to improve your inurance score, and some lowered it. The calculation process and weights used by each insurance company and/or its service providers are proprietary and confidential. As a result, they do not disclose your specific score or the details of how it was calculated. So when we as agents obtain a quote on your behalf all we see is the final price. Even company employees have no access or flexibility to override the premiums determined for any risk by their secret algorythms.
