Insurance rates determined by car or credit score?

[katie]

I was just wondering if my auto insurance rates will be based on the type of car I drive, my driving record or my credit score?
Thanks in advance for your help.

[anchorbob]

I'm pretty sure insurers use your credit score nowadays. Also, prospective employers. If you have too low of a credit score, you can't get a job!

[Terri007]

There's a bill in the Texas House that is asking to stop insurance companies from running credit checks in order for people to get insurance. I hope like hell it passes.

[Ally]

Originally Posted by Terri007

There's a bill in the Texas House that is asking to stop insurance companies from running credit checks in order for people to get insurance. I hope like hell it passes.

Lower credit scores=higher insurance rates for most.

The model car you choose may also affect how much your premium will be. Cars that are sporty will cost more to insure.

[BRugger]

I think that sedans might have lower rates than 2 door vehicles.
Plus the age of the driver has to be taken into account. 18 year olds will pay higher premiums than a 34 year old with a good driving record.

[shaggyjunior]

here in canada, insurance rates are based on how many years of driving experience you have, as well as accident history.

credit score has nothing to do with determining insurance rates

[onlybrad]

They are determined by your credit score for the most part.

I was working on a friend credit reports for him and he said his rates doubled from $80 to $160 since this new company check his credit.

Believe it... They are going by credit scores for the most part. Everything else is the same but they determine your monthly rate based on how well you pay your bills on time and other factors.

Thanks,
Brad

[creditnightmare]

all 3 are the most important factors they look at.... then of course, your ZIP (location).

i am in NYC :(

[mnlakediver]

I used to work for a 2 insurance agencys

the rates are based on not in order
#1 your driving history
#2 your claims history
#3 location
#4 car type

your credit score was used when looking at payment plans (monthly/3 month/6 month/ yearly)
we never pulled a CR untill after underwriting

[JaneO]

I'm an insurance agent for a Fortune 500 insurance co. I write insurance in NJ. Many insurance companies are definitely using credit to determine a portion of your rate. We call it a Financial Stability score from 1-10 (1 being the best). This score is a soft inquiry on your credit report. My company pulls from Equifax. We are not able to see your FICO score, however, this financial stability score gives us an idea what type of credit you have.

Here's the reasoning behind the credit checks. As we all know, insurance is about risk. Statistically, it has been found that people with better credit are more "responsible" and in turn, a better risk for the company.

However, credit is NOT the only factor that is taken into account when calculating your rates. Other factors include Home ownership, marital status and the # of vehicles that you have on the policy.

MOST IMPORTANTLY: YOUR LOSS HISTORY AND DRIVING RECORD!!!!!!

Hope this helps!