Does Credit Affect my Prices
Many factors are analyzed to price your insurance. They include your driving record, claims history, the type of home or vehicle you own and, in some states, your credit-based insurance score.
What is a Credit-Based Insurance Score and Why Does it Matter?
The credit-based insurance scores is a number that measures your likelihood of having an insurance claim, it is not the same as your personal credit score, nor is it a measure of your credit worthiness. 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.
Because your personal credit history affects your credit-based insurance scores, it is important to regularly review it and make sure it’s 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— Experian, Equifax, and TransUnion.
Credit Rules Vary by State:
Most states have rules about how credit information can be used in insurance. Provided below are the rules for the state of Oklahoma. http://www.ok.gov/oid/Consumers/Consumer_Assistance/Credit_Based_Insurance_Scoring.html