Insurance Credit Score

Credit-Based Insurance Scores Explained

Almost all insurance companies use many factors to price your insurance, including your driving record, your claims history, the type of home or vehicle you own, your age, your marital status, and your credit-based insurance score.

The inquiry that is made on your credit from any insurance company will not impact your credit rating. Insurance inquiries are called “soft hits,” meaning they cannot lower your score.

For customers who prefer to pay cash and not bother with credit cards and installment loans, they may not have a credit score; Kesslak Agency Inc. has several companies that treat those types of individuals very fairly. Call us at 814-269-1474 for a quote today.

What is a Credit-Based Insurance Score and Why Does it Matter?

Your credit-based insurance scores are not the same as your personal credit score, nor is it a measure of your credit worthiness. The credit-based insurance scores is a number that measures your likelihood of having an insurance claim. Studies have shown that consumers with higher credit-based insurance scores have fewer and less severe losses. For this reason the credit-based insurance scores is useful as a rating factor, but it is only one of many that are used.

Because your personal credit history affects your credit-based insurance scores, it is important to regularly review it and make sure that it is accurate. The Fair Credit Reporting Act (FCRA) allows you to order one report for free from each of the major credit reporting agencies each year. You may also purchase a "3-in-1 report" to review your scores from all three major credit bureaus—Equifax, Experian, and TransUnion.

Credit Report Errors

If your credit record is incomplete or has an error, ask the credit reporting bureau to make the corrections. If they do they will notify you in writing. Then you can let us know if you want your policy number updated by providing a copy of the notice with your name and policy and mailing it to Kesslak Agency Inc. 1405 Eisenhower Blvd Suite 103 Johnstown, PA 15904.