Contact: (217) 355 9075 - Address: 702 Bloomington Road. Suite 205. Champaign, IL 61822 - Email: dave@insuringchampaign.com

Why Does Credit Affect the Price of My Insurance?

Why Does Credit Affect the Price of My Insurance?

Over 90% of Insurance Companies in Illinois use information from your credit report to determine the price you pay for insurance and they do it because the  Illinois Department of insurance allows it.

Insurance Company's have submitted that There’s a statistical correlation between your credit score and how likely you are to file a claim, and insurers use this correlation as the reason for the practice of raising rates for drivers with bad credit.
 
A Good FICO score does not automatically mean a good rate. Many insurance companies look at different factors in your credit report and use their own formula to give you what they call an "Insurance Score". They use your insurance score to determine your rate for your car and home insurance. The information each company uses is "proprietary" so they are very secretive about what information they use. The don't want the other insurance companies to figure out their scoring method.
 
But is it fair to use credit to determine your insurance rates?
 
Just because it is allowed doesn't mean it is fair. In fact three states, California, Hawaii and Massachusetts have outlawed the practice. Many consumer advocate groups are pushing other states to also ban the practice, but are facing a tough fight from the insurance companies. It looks like credit based insurance is here to stay for now.
 
 
 

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Rueck Insurance is your independent, one-stop insurance center for all your personal and business insurance needs in Illinois. Insurance shopping is easy when the Protection Team provides you with multiple quotes to choose from. You will always know you are getting the best coverage at the lowest possible price.

Contact Info

Rueck Insurance is your independent, one-stop insurance center for all your personal and business insurance needs in Illinois.

702 Bloomington Rd#205
    Champaign, Illnois
(217) 355-9075
dave@insuringchampaign.com

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