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While some states — like California, Hawaii, Massachusetts and Michigan — restrict the use of credit scores to determine your premium, many insurers use credit-based insurance scores to set rates.
To calculate a credit-based insurance score, your insurance company reviews your credit report to assess your risk in a simple numerical form. ... The use of credit-based insurance scores in car ...
Credit: Many insurers weigh drivers' risk of getting into an accident by looking at their credit. Only a few states (California, Hawaii, and Massachusetts) do not use credit-based insurance scores ...
An insurance score – also called an insurance credit score – is a numerical point system based on select credit report characteristics. There is no direct relationship to financial credit scores used in lending decisions, as insurance scores are not intended to measure creditworthiness, but rather to predict risk .
In most states, improving your credit can be another way to bring down insurance costs. Credit-based insurance scores differ from the scores that lenders use but are based on many of the same ...
The Zebra offers a way for consumers to get real-time quotes from car insurance companies by filling out an online form. [12] As the driver fills out the form, answering more questions about things like their age, driving record, and credit score, the quotes increase in accuracy. [12]
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