How Your Credit Affects Premiums
Your credit history plays a role in determining the cost of your insurance premiums. Here’s a list of credit FAQ’s to help you learn more.
Why is Brightway Insurance using my credit history to rate my auto insurance?
Brightway Insurance, like many of today’s insurance carriers are using credit history to help determine premiums and/or which customers to insure. Studies have shown that there is a relationship between a person’s credit history and his or her probability of experiencing future automobile insurance claims.
How does my credit history impact my premium?
A better credit history indicates less probability of future claims, and therefore results in lower premiums.
Besides credit history, some of the other rating factors that determine premium costs include driver age, how your vehicle is used, driving history (obtained from Motor Vehicle Reports), auto claims and the make and model of your vehicle(s).
What types of factors are used to determine my credit history?
There are many. Some of the more common factors used are:
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How can I learn more about my credit history?
Your Brightway Insurance Agent is in the best position to address specific concerns related to your policy. Recommending ways to offset any increases in cost or enhance existing coverage is just one of the many services your Brightway Insurance Agent provides. You can also visit the Federal Trade Commission (FTC) website, which offers additional consumer credit information:
