What Every Policyholder Should Know About Insurers’ Use of Credit Scores

Carney Insurance Services

Many times our clients come to us with clean driving records and have no home claims and wonder why their rates are higher than their neighbors, family members, etc.  In MN, credit score is used in the underwriting process.   It all comes down to statistics and statistics show that those that have a lower credit score are more likely to make claims on their insurance policies or take less care of their properties.  Unfortunately for some, that means higher rates.  As agents, it is out of our hands and in the hands of the state of Minnesota and the underwriting process for the companies that we work with.   Fortunately, as Independent Agents, we have many companies that we can “shop” your rate through and find you the best policy at the best price.  If you know that your credit score is less than stellar, there are ways to improve your credit score and we are able to, in most cases, have our carriers re-run your credit reports once a year to get you the best rate possible.   We are here to help our clients get the best rates that they can and take pride in knowing that we have done everything we can to help with that.

What Information Is Used to Determine Your Credit Score?

•           Outstanding debt

•           Length of credit history

•           Late payments, collections and bankruptcies

•           New applications for credit

•           Types of credit in use

For the full article and tips on improving your credit score click here

If you know that  you have recently made great improvements in your credit score,  Contact Us  We will check with your insurance carrier to see if they would re-run your credit score as a courtesy to you.

Information provided by The Insurance Federation of Minnesota

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