Is It Right For Insurance Companies To Your Credit Score

If you were unaware your credit score can be used it determining your insurance premiums. Furthermore, it can be used by insurance companies to determine if they will even insure you.  What is your opinion of this?

Congress gave insurance companies the right to do this with the Fair Credit Reporting Act.  Also, it really isn’t really your true credit score that is used.  There is a special insurance credit score.  It uses the same core areas: payment history, utilization, credit history, credit inquiries, and credit mix, to determine the score.

So here is the problem is there really a connection between your payment history and how safe you drive?  I think most people would agrue no.  If I paid my bills late I must now drive unsafe.  I think you are beginning to see the problem.

On the side of insurance companies you will find the arguement that if you are not reponsible with paying your bills chances are you are not responsible while driving.

You should realize that you can’t live without insurance and not having is often illegal (liability insurance while driving).  If you don’t like this practice you are going to more than likely have to live with it.  This is just another way your credit score will have a chance to effect your life.

Related Blogs

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Tags:
Posted in Uncategorized

Leave a Reply

Trackbacks