Credit Scoring and Your Auto Insurance Quote
Did you know there’s a connection between your auto insurance and your credit score? While not the primary consideration, one of the many tools used to determine your premium is your insurance bureau score, derived from your credit bureau score. Insurance companies generally believe that responsible behavior should be rewarded with lower premiums. When calculating auto insurance quotes, companies put action to these words by developing rates using a variety of criteria. Fairness dictates that to the greatest extent possible, companies develop individualized insurance premiums that reflect the likelihood of future claims. The challenge is to try to predict, in advance, those who are more prone to loss.
Numerous tools are used to predict auto insurance claims activity, and one of the most accurate is the insurance bureau score, developed using information from an individual's credit bureau report. Unlike a credit score, which banks and other lending institutions have used for years to predict the likelihood that their clients will pay their bills, insurance bureau scores were developed solely to predict insurance claims activity. It is statistically proven that the better a person's credit score, the less likely he or she is to submit a claim, which therefore should translate to a lower auto insurance quote and premium. One of the first concerns many people have is, "will the credit score inquiry be a "hard inquiry" and affect my credit score?" The answer is no, it is a "soft inquiry" and will not affect your credit score. The best news is that, for most people, insurance bureau scoring results in a lower auto insurance quote and premium!
Criteria for Auto Insurance Quotes
When you get auto insurance quotes, the insurance companies takes many factors into consideration, including:
- Age of the drivers
- How many drivers
- Driving records
- Types of vehicles being insured
- Age of vehicles
- Garaging location
- Commute distance
- Safety features (airbags, anti-theft features)
- Multi policy discounts
After considering al of these factors, no two auto insurance quotes will be exactly the same. Dean Insurance will help you compare apples to apples, to help you settle on the best auto insurance policy for your situation.
Call Dean Insurance at 410.838.3700 for a car insurance quote or click here for Dean Insurance contact you directly!
We provide auto insurance quotes in Baltimore, Cecil County, Harford County and Southern PA!
In Harford County we service the following towns: Harford County, Aberdeen, Abingdon, APG, Baldwin, Bel Air, Belcamp, Benson,
Churchville, Darlington, Edgewood, Fallston, Forest Hill, Gunpowder, Havre de Grace, Jarrettsville, Joppa, Kingsville, Magnolia, Monkton,
Perryman, Pylesville, Street, Whiteford, Whitehall