In recent years, an applicant’s credit score has grown in importance for determining car insurance prices. Every agency now asks for credit scores before determining coverage rates. According to Lower-Auto-Insurance.com, brokers and financial analysts have noticed that credit rating has a growing influence on auto insurance prices.
The changes may have been caused by the recent financial crisis, when many auto insurance policies lapsed. To avoid financial losses, agencies may now decide how much to charge someone based on his or her credit score. Someone who has a good credit rating may get cheaper insurance premiums, as the agency believes that clients who have a good financial situation will be better able to cover their premium expenses.
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