DID ANYONE ELSE KNOW THAT CAR INSURANCE COMPANIES RUN YOUR CREDIT?
Question by ishmestephanie:
Did anyone else know that automobile insurance companies run your credit?
My boyfriend and I were thinking of moving. We are both on our parents insurance and what not so I was just running quotes to see what the rates would be like, and it asked me for my social… What the heck does your FICO have to do with getting automobile insurance? I dont really see a correlation between your credit score and getting into an accident…
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Answer by rottendog93
But they do, and you are trying to do business with them.
Deadbeats usually do not pay any bills on time.
Answer by oklatom
It’s no secret they run your credit. They are looking for risk factors that would increase your premium, and having a poor credit rating has been shown to increase the risk to the insurance.
Of course, you are not required to give out your social security number, but if you don’t, they can decline to insure you.
Likewise, your employment can also affect it. A bookkeeper would be less risk than a police officer for example.
Added: afterthought. Also it will decide if you can make payments, or if they want the whole thing paid up front.
Answer by sideboom
just stay on your parents plan until you get on your feet. your parents can do a credit check on their own plan( for you),to see how well you score with the company.
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about 3 months ago
It’s good business sense. A credit check is going to show if you have been making credit card payments on time or have ever been late paying, and if you ever held a job.
Shop around but make sure you get the right coverage because if you’re moving out on your own and are no longer covered on your parent’s medical plan, you’ll need to factor that in. Are the two of you going to be cross insured on each other’s cars? Also you might want to look into renter’s insurance and it might be possible to get a “multi-policy” discount if you get the renter’s insurance from the same carrier as your auto insurance. On the flip side, you still might bet a cheaper rate than the discount from a “multi-policy” would give you.
about 3 months ago
Insurance companies use what data they can get ahold of to assess their risk by insuring you.
It has been shown that those with poor credit have more accidents, so they assess those with poor credit higher premiums.
about 3 months ago
I think it’s wrong because so many people are losing their jobs or have already and their credit is getting screwed big time. I don’t think anyone should just be allowed to look at your credit because of the fact if to many people do your score goes even lower.
I think it’s a violation of your privacy and your rights.
about 3 months ago
You can get quotes without your social by checking out different comparison sites online. Click on the link below and scroll down the article to the list of comparison sites in order to get some quotes.