Credit Score and Insurance Rates

Whether you agree that credit score should be a factor in determining insurance rates, in most states and with most insurers, it can be a factor.

Using credit score for other types of financial services makes sense, because they want to make sure you pay your bill. It may be true that those with lower credit scores are more likely to file claims.

It's really difficult to determine why they use credit score for insurance. However, more than likely it would not be weighted as much as other factors.

How many tickets you get, how many claims you've filed, will probably be more important factors.

If you really wanted too, you could get a credit report that's free once a year, and see if it's correct and see if you can make your credit score better.

You may also consider getting a your CLUE report, which is free as well, that tracks your claim history for the last five years, and make sure that is correct too.