Depends a whole lot on the insurance company and they use it only to raise rates and profit from it, so find a company that doesn't
2006-07-27 12:55:26
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answer #1
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answered by Anonymous
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I don't know if it's primarily based on your credit score, but your credit score is a factor.
I'm pulling this from memory, but I recall a some research conducted by an insurance company or insurance trade group found that the number of claims is inversely correlated to a person's credit score. So if you have a low credit score you are more likely to make a claim than if you have a high credit score. Therefore a person with a low credit score has a higher premium.
This sucks for people with low credit scores because they don't have any debt!
2006-07-23 18:54:48
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answer #2
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answered by Joe T 2
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It's not primarily based on your credit score: that is just one of the factors. But your credit score does matter because the insurance companies have found that there is a correlation between a bad credit score and bad driving. There's a good explanation of it on this website:
2006-07-24 05:17:59
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answer #3
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answered by Anonymous
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Many things come into play when rating auto coverages, where you live & drive, what you drive, how well you drive, how well your neighbors drive, etc...so auto rates are not primarily based on your credit score.
The auto insurance industry is so heavily regulated, it's hard to deviate from the rules imposed by any particular state.
Insurance companies cannot just make up pricing out of thin air, rates have to be justified by the state's insurance commision.
2006-07-23 18:56:14
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answer #4
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answered by just visiting 5
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It is primarily based on your driving record. If your driving record is clean, but your credit is horrible, then your credit will affect your rate. Other factors that will affect your rate are age, gender and how long you've been continuously insured.
Try Geico or Metropolitan Insurance...they've been the lowest that I've found. Good luck.
2006-07-23 18:50:48
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answer #5
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answered by seattlecutiepie 5
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maximum states use credit rankings to base quotes on. in addition they use driving journey, driving checklist, city you reside in, and sort of vehicle. some states use gender, grade element time-honored for finished time pupils, domicile possession status, marital status, and how many miles you force, whilst calculating the fees. a majority of those are aspects impact how probably it fairly is which you will have an incident which incorporate your vehicle, or how probably it fairly is on your vehicle to get stolen; it is not somewhat fairly trouble-free as "good driving force/undesirable driving force". If I force a Ford Pinto, and that i'm a terrible driving force, i'm much less probably to have my vehicle stolen than somebody who drives a Ford Mustang Convertible, despite in the event that they are an extremely good driving force. on the subject of the credit, claims journey shows that individuals with a decrease credit have greater claims, with larger payouts, than those with an more desirable credit. Numbers that i've got in my opinion considered shown that 701 is the time-honored "destroy even" element, the place they pay out $a million.00 for each $a million.00 they take up top type, for a private vehicle coverage. From an coverage employer perspective, it is not significant WHY there are greater claims with a decrease credit, in simple terms like it is not significant WHY youthful male drivers have greater claims than youthful woman drivers - in simple terms the actual incontrovertible fact that the courting exists potential that it particularly is honest to can charge greater top type to the better danger individual.
2016-11-02 21:09:07
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answer #6
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answered by ? 4
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Not in B.C. It's all through govt-run ICBC and after you pass 26 y/o it's based on your driving record period and the year and model of car you drive, what type of driving you do with it (i.e., business, pleasure), how many other drivers use the car, etc.
2006-07-23 18:50:24
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answer #7
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answered by fugutastic 6
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It's not. Thats just one of the factors.
IT's age
record
score
2006-07-23 18:49:47
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answer #8
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answered by ? 3
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I guess they figure that if you're not reponsible with money, you won't be with a car.
2006-07-23 18:50:46
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answer #9
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answered by First Lady 7
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