Why is your auto insurance premium primarily based on your credit score and not your driving record?
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Answer:
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
It's not. Thats just one of the factors.
IT's age
record
score
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.
I guess they figure that if you're not reponsible with money, you won't be with a car.
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.
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!
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.
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:
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