Why Do Insurance Companies Do Credit Checks?

Insurance companies have been doing credit checks for commercial risks for some time and is a common practice in assessing whether or not to insure a business’ risk. However, recently insurance companies have been performing credit checks on personal risks such as someone buying auto insurance for their personal vehicle. The reason insurers do this is because they have found a correlation between an applicant’s credit score and an applicant’s propensity to rack up insurance claim. Simply put, the actuaries have found that those with poor credit scores get into the most accidents which costs the insurance company money. Therefore, in order to protect themselves, insurance companies will charge those with lower credit scores higher insurance premiums.

get quotes now



serving all 50 statesprivacy protectedcustomer satisfaction guaranteed
Page copy protected against web site content infringement by Copyscape

 

Privacy Policy | Terms of Use | DMCA | FAQ | Resources | Site Map

American Family | Arrowhead | Talro Auto Insurance | Viking Auto Insurance | Encompass Insurance | 21st Century | Wawanesa | West Coast | Top Auto Insurance Companies | Change Insurance Company | No Credit Check Auto Insurance | Auto Insurance Companies | Amco Insurance | Cheap Car Insurance | Acura Insurance | Full Coverage Car Insurance Quotes

*Based on what the average new customer saved on an annual policy from September to December 2011 using our site.

*InsuranceQuotesFor.Me is not an insurance agency, broker or provider. We do not make any representation, expressed or implied, that you will receive a quote from any particular company. Content on this site is for informational purposes only. Information describing the products contained herein may not be offered in all states. All trademarks, logos and copyrights are held by their respective owners. Reproduction of content and design without permission is strictly prohibited. Images licensed by IStockPhotos.

© 1999-2012 InsuranceQuotesFrom.Me. All rights reserved.