Credit Score & Insurance

Have you ever wondered why your insurance agent needs to know your credit score? In the United States, 46 out of 50 states allow insurance companies to use credit score when determining premiums for auto and home insurance, Connecticut being one of them.  The Federal Trade Commission has done several studies and has found that there is a direct relationship between the likelihood of someone to get into a severe accident or cancel for non-payment and their credit score. This is just another reason to keep your credit score high, however each insurance company uses the credit score to a different degree. It is the insurance company, not the agency that will have access to your credit score during the quoting process so you don’t have to worry about your privacy with your local agent!

It’s important to provide your agent with the information they need to give you the most accurate quote, for any kind of insurance coverage. If you have questions about what information they need or why they need that information, ask your agent! As we always remind you: each policy is uniquely designed for you and the best way to know the most about your policy is to ask your agent directly.