How Credit Scores Affect Your Homeowners Insurance Quote
How Credit Scores Affect Your Homeowners Insurance Quote 📌 Table of Contents What Is a Credit-Based Insurance Score? Why Do Insurers Use Credit Scores? How Credit Scores Affect Your Premium States with Restrictions on Credit Use Tips to Improve Your Score and Lower Your Rate Get Your Free Credit Report What Is a Credit-Based Insurance Score? Your credit-based insurance score is a numerical value based on information in your credit report. Unlike traditional credit scores used by lenders, this score is used by insurance companies to assess risk. It helps insurers predict how likely you are to file a claim. Major factors include payment history, outstanding debt, credit history length, and types of credit used. According to the Insurance Information Institute, around 95% of auto insurers and 85% of homeowners insurers use credit-based scores in states where it’s allowed. Why Do Insurers Use Credit Scores? Insurers argue that credit behavior s...