Did you know that in most states your insurance company can use your credit score to figure out your premiums? I didn’t know this until I started working for an insurance agent last year.
What I know.
Every company is different in they way they use your score. Some can see your score while other have their own rating system. Where I work we have an A-Z rating system. A is the highest and Z is the lowest. While I have been here I have only found one client with an A and only 2 with a Z’s.
I just don’t see it.
“Research indicates that people who manage their personal finances responsibly tend to manage other important aspects of their life with that same level of responsibility and that would include being responsible behind the wheel of their car or being responsible in maintaining their home,” said Donald Hanson of the National Association of Independent Insurers. I disagree with this statement because I myself do not have the greatest finances but I have never been pulled over or ticketed by the police and have not had any at fault accidents.
What can happen.
Many companies will pull your score just like your MVR at every renewal to make sure they are charging you properly. Where I work the computer system will randomly pull your score and MVR. If your score improves you get the savings but if your score has declined they will not lower your score and honor the current one you have listed. Some clients have not had their score or MVR pulled since they started their policies.
Other factors.
The other things that play into your premium are age, type of vehicle, driving record, claims, and prior insurance. My rating is a P but because of my driving record and claims record being clear and I have had continuous insurance since I was 16 this has help me out on my premium.
What you can do.
Ask your agent how they use your score and see how often they pull it. At the agency I work for we are here to help our clients. One of my duties is to call our clients and offer a review of their policies. I would recommend that everyone do this with their agent. If they don’t call and offer like we do then call them to set an appointment. Sometimes things change in your life and your insurance company may be the last to know. One example is you may have had a child some companies offer a new parent discount on your auto policies.
Best regards,
Maeghen
