Credit Based Insurance Scores

Most insurance companies are today taking note of how well you manage your money. If you do it well, you are probably getting lower rates. Lamont Boyd, Fair Isaacs and Company says insurance companies have been studying the relationship between credit and insurance claims for many years, and what they have found is that those people who manage their credit responsibilities very well, also take very good care of their homes and drive responsibly. Susan Gran of the National Consumers League says credit ratings are a fact of financial life, important in order to rent an apartment, get a job, or get electric utilities. PJ Crowley, Vice President, Insurance Information Institute says most insurance companies use credit in one way or another to determine what rates to charge. He says credit based insurance scores mean insurers can write more insurance, even for those with spotty driving records, and they can provide more insurance at a better price.

For more information about insurance, go to the I.I.I. Web site at http://www.iii.org

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