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FAQ: Auto Insurance Rates Explained
Will my credit affect my auto insurance rates?
In this world, it’s pretty hard to escape your credit history. Whether you’re applying for a credit card, purchasing a home, or buying auto insurance, your credit will always play a role. Having good credit is important to your financial wellbeing and can also earn you lower auto insurance rates.
Most U.S. insurance companies, including Esurance, use credit-based insurance scores to establish eligibility for payment plans and to help determine insurance rates. If you have a high credit-based insurance score, you can generally expect to pay less for auto insurance than someone with a low credit score.
The insurance industry uses credit-based insurance scores because actuaries and research analysts have found that the scores are a statistically significant predictor of accident potential. Though this relationship may seem strange, it has proven to be a statistically valid measure.
Esurance uses ChoicePoint to obtain your credit score. ChoicePoint is the leading provider of consumer reports to many insurance companies.
You have the right to dispute inaccurate information in your credit file. In fact, to make sure it’s accurate and to prevent identity theft, you should review your credit report at least once a year. If you have questions about information obtained from your consumer file, you should contact ChoicePoint for a copy of your report.
Your privacy is important to us. That’s why while you’re buying your policy we let you know when we’re going to verify your personal information. You can also rest-assured that your information is secure on our Web site when you buy a policy from us.
For more information about credit-based insurance scores, visit the Esurance Learning Center. You can also take a look at ChoicePoint at www.choicetrust.com. In addition to providing credit-based insurance scores, ChoicePoint also helps auto insurance companies verify driving records and claims histories.
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