Posted: 04.17.2007
Credit-based insurance scores can help you qualify for lower premiums because insurance companies charge lower rates to customers who are considered lower risk.
Since insurance scores have been used, competition in the auto insurance market has increased significantly. Competition quite often leads to more choices and lower costs for consumers.
By using credit wisely – paying bills on time and being financially responsible – you can improve your insurance score and most likely qualify for lower rates.
The Federal Fair Credit Reporting Act (FCRA) provides numerous other protections, including:
- The right to obtain a free copy of your credit report if you are adversely affected (for example, denied coverage) based on information in your credit score
- The right to contest any inaccuracies in your credit report and have the inaccurate information removed
Each of the three major credit reporting agencies also are required to provide you with one free copy of your credit report annually. To obtain your copies contact:
- Equifax at equifax.com or (800) 685-1111
- Experian at experian.com or (888) 397-3742
- TransUnion at tuc.com or (800) 888-4213
