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

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.

Why do rates go up as the value of my vehicle goes down?

Every year your car gets another year older and the value depreciates a little more...So why do your insurance rates never go down?

It's true your car value goes down significantly every and the average depreciation after 5 years is 60%, but your insurance rates stay the same (if you are lucky) or go up each year. 

There are 3 main reason for this .

1. The cost to repair your car or truck never decreases.  Your insurance pays for the the repair of your car (if you have collision and comprehensive coverage) and the body shop doesn't pay it's employees less to work on a 2008 Ford than they do for a 2015 Ford. The costs at a body shop only increase each year.

2. As your car gets older parts to repair can get harder to find. In fact if you keep your car for 10 years you might see a slight bump in premium because it gets increasingly difficult to find parts to repair your car.

3. One major part of your insurance is Bodily Injury Liability coverage. That is what pays the medical bills of people you may injure in another vehicle in an accident. If you have been to the Doctor or Hospital lately you know that medical bills have not decreased.

So even though your car is older and has less value, the cost of the benefits of your policy are increasing each and every year and that is why it is unlikely you will ever see your rate go down.

If you would like a quote on your car insurance, give Rueck Insurance a call at 217-355-9075. As an Illinois Insurance Broker we shop your rate with over 10 companies to find you the best deal. 



If you are like most people you will complete the paperwork to buy a new car after regular business hours or on the weekend. Times when your insurance agent's office is probably closed and you might be asking yourself when you get into that shiny new car...Am I insured to drive this car off of the lot? 

new car buying couple 2

The answer is... It Depends. 

Most insurance companies provide automatic coverage for new purchases equal to the broadest coverage you currently have on your insurance policy. 

For Example, if you have a car insurance policy in effect and you buy a new vehicle, that policy will automatically cover you for a short period of time (check with your agent, but usually between 4 and 14 days) This is built in protection in case you forget to notify your agent right away. 

Warning! If your policy only has liability coverage that is the only coverage your new car will have too. You will not have coverage to repair your car if you drive it off the lot.

If your policy has multiple cars, one with collision and comprehensive coverage and another with liability only coverage, the company will extend the greatest level of coverage to the new car during this temporary period. Meaning the new car would have matching coverage to the car with collision and comprehensive coverage.

Tip: You don't get Free insurance during this time. You must add the car to the policy effective the day you bought it. You just don't have to notify your agent the same day in some cases.

If you don't have a current insurance policy in place, you will need to arrange insurance before you drive the car off the lot.

Q: Will the Dealership insurance cover my new car?

A: No, the Dealership has a policy to cover their cars. Once you sign the paperwork it becomes your car and yours to insure

Q: Will the Dealership notify my insurance company when I buy a new car?

A: No, this is also your responsibility. Do not rely on the dealership to do this for you, even if they say they will take care of it. 

Q: What is Auto Loan Gap Insurance? Do I need it?

A: If you are financing your new car, Gap Insurance is probably a good idea. Learn more about Gap Insurance Here


If you are not 100% certain how your insurance company would handle a new car purchase or what kind of coverage you have on your current policy, contact your agent before you drive the new car home.

Rueck Insurance is located in and proud to serve the Champaign, Urbana area as well as all of Illinois. 



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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

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