How does your Credit Affect your Insurance rate?

What does credit history have to do with the rate you pay for Insurance?

Insurance Companies group consumers based on their credit history because data shows, and a number of studies have proven, that credit history is a good predictor of future accidents and claims. This is not to say that all people with a poor credit history will have an accident because the insurance company can’t make predictions about any individual but rather about large groups and classifications of people.

Insurance companies offer discounts based on what your credit score is. The better your credit , the larger discount your eligible for. For example, if your score falls in the range: 750-800 you will receive a 40% discount, if you score is 500-550 you will only receive a 5% discount.

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