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Why Credit Score Is Used As Rating Factor By Car Insurance Companies

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LOS ANGELES, Sept. 8, 2019 /PRNewswire-PRWeb/ -- Carinsuranceplan.org has released a new blog post that explains why insurance companies use a person's credit score to determine car insurance costs.

Find out more info and get free car insurance quotes from https://carinsuranceplan.org/how-insurance-companies-use-credit-information-as-a-rating-factor/

Almost all car insurance companies use the credit score as a rating factor. The only states were insurance companies are prohibited to use credit information to determine policy rates, are California, Massachusetts, and Hawaii.

Insurance companies consider that a person's credit score will provide more info on how risky it is to provide coverage. Drivers with good or excellent credit score, pay significantly lower insurance rates, than those that have a low, or poor credit score

Independent studies have evaluated the impact of credit score over a driver's insurance rates. These studies concluded that:

  • On average, drivers that have poor credit score can expect to pay twice as much for car insurance rates than drivers that have an excellent credit score.
  • Improving the credit score from poor to good, can save 32% on insurance premiums
  • Improving the credit score from good to excellent can save an additional 27% on car insurance rate.

For more details, money-saving tips and free quotes, visit https://carinsuranceplan.org/

Carinsuranceplan.org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.

SOURCE Internet Marketing Company

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