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Posted in Auto Insurance
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Question By
NurseLaurie

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0 People Helped
Why is my auto insurance score low. I haven't had any claims, tickets, or accidents?

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Auto Insurance Score reading poor

Helpful to 20 out of 32 people

I have not had any tickets in over 30 years. I have never had an accident. There was never a gap in coverage for me. I have never even had not one late payment,  I only have 2 credit cards.  Why in hell is my auto insurance score reading poor?????  This is nothing but a scam and a bunch of BS.

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Auto insurance

Helpful to 4 out of 8 people

What does auto insurance have to do with your credit score?  Especially since it's mandatory now. We pay it on time have no claims or accidents so why would it affect our credit rating?  

Reply by
jon31415926

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10 People Helped
Helpful to 5 out of 8 people

We pay it on time have no claims or accidents so why would it affect our credit rating?

It doesn't. Your credit rating, or rather your auto insurance score can affect your insuranced premium depending on which insurance company you use. The auto insurance score is like your credit score in that it is based on your credit report but it based on a different (and mysterious if you ask me) formula. Note that the formula is a 'trade secret' so I doubt there is any oversight to even check if the formula even does what it claims (which is to predict the risk that an individual will file a claim).

Reply by
JMor1218

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Helpful to 2 out of 4 people

Actually,  the formula is not a "trade secret" but filed with the state you live in.   All insurance companies are allowed to have their own formula but they must apply the same formula to every quote they give so as not to show any favortism.   Insurance rates are factored based on Driving record,  location you live, vehicle your driving, credit score, claim history,  insurance history (longevity helps, switching companies alot hurts) and age.  All of this is factored against a base rate for the state you live in which is determined by the amount paid out in claims every year.  If claims are higher then expected, rates go up, if they are lower, rates go down.    There may be other factors as well but these are the most common.

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auto ins.

its just a ripoff for them to charge higher rates when someone else has an accendent and they haven't collected enough money from them to pay for what they had to pay out so they raise everyones elses rates to try and cover for there lost on just that one accendent

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car insurance

Helpful to 6 out of 13 people

Never had any tickets or accdents the score should be higher.Thanks Gail Taylor

2 Contributions
3 People Helped

pete

Helpful to 3 out of 7 people

I had the same problem my score droped to when they increased my credit card limit.

2 Contributions
9 People Helped

Helpful to 5 out of 14 people

I am also wondering the same thing. 

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