Myth vs. Fact
Myth:
Your credit score only matters when applying for loans or credit cards.
Fact:
In many states, credit-based insurance factors play a significant role in how auto and home insurance rates are calculated—sometimes even more than your driving history.
Insurance companies look at a variety of elements when determining pricing, and credit-related factors are often one of them. This can help explain why rates may change even when you haven’t had an accident or ticket.
Understanding how insurance pricing works can help prevent surprises at renewal time and make conversations with your agent more productive. When you know what factors may be involved, it’s easier to plan ahead and ask informed questions about your coverage and options.
Have questions about what may be impacting your insurance rates? We’re always happy to help explain what goes into the process.
