Reader’s Question:

Are my credit scores used to evaluate my premiums here in Texas during an auto insurance company rating process?

Casper

Arlington, TX

Your credit score may definitely be used by auto insurance companies as a reference and should not be the sole reason or factor to be used in determining your car insurance premiums there in Texas. However. Your credit or payment history and behavior is definitely an indication of how responsible you are in taking care of your bills, which can give an auto insurance company a good idea or predictor of your future auto insurance risks and probability of filing claims.

However, your age, where you live, the kind of vehicle to be insured and your driving record would have a more significant impact on your auto insurance premiums. Credit score is merely a way for the car insurance company to categorize the kind of customer you are, especially when it comes to billing but your overall auto insurance risks are based on the factors stated above. Driving history itself already has the biggest impact on your rates among all factors, followed by your age grouping and so forth.

So yes, auto insurance company ratings do use credit but not in the same way as other companies would. Also, when an auto insurance company does use your credit score it should have no impact on your credit score at all. It would also be advisable to shop around, the Internet is a great way to be able to compare auto insurance rates from different carriers conveniently.

Tags: auto insurance company ratings, insurance company ratings, car insurance, insurance company, auto insurance