Weekend Insurance Tip: Know How Your Credit Score Can Change Your Insurance Quote and Insurance Policy
Saturday June 27, 2009
Did you pay all your bills this month? Your insurance company wants to know. Credit scoring, the term used by insurance companies to rate your credit, has been a disaster for some consumers. Most insurance companies are now basing the cost of your insurance policy on your credit score.
Missing as little as two payments on credit cards or other financial obligations could lead to your insurance premium possibly doubling. If your credit score is bad you could pay more when getting an insurance quote. And, regardless of the time you have been with your insurance company or your loss history, a low credit score could lead to a higher insurance premium or possible loss of your policy.
It is against insurance regulations in all states to non-renew and/or cancel a policy solely based on your credit score. It was an agreement reached in every state prior to allowing insurance companies to use credit based scoring to factor insurance premium pricing.
I use to work for 2 large insurance companies, doing business in all states, as well as being an insurance agent.
I will say though, that if you have other items that could allow a company to non-renew and/or cancel your policy and you have a low score, you may not get the benefit of the doubt.
I create videos and publish a blog + articles on my site related to Massachusetts Auto Insurance as well as other insurance products in my state. Do you do any sort of guest blogging? I think my readers would enjoy hearing another voice sometimes