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Posted in Auto Insurance
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Question By
usmcr501

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5 People Helped
why is my credit report used for insurance

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Top Contributor
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Like all things involving finance

Insurance companies want to know how reliable you are at paying your bills.  Also, people with higher credit scores tend to be more responsible, i.e. less likely to "Hit and Run" or try and "cheat" the insurance company by filing false claims etc. 

your credit score is a reflection of how you manage your finances which is a reflection on your character.  Thats why insurance companies use credit scoring in calculating your insurance costs. 

Hope that helps

Top Contributor
19 Contributions
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simple answer is risk... they want to see if you are irresponsibile and your credit report will show them. It also gives them the ability to make more money off you because they charge you more if you are higher risk.

Top Contributor
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87 People Helped

they have found that people with poor credit are more likely to file claims. 

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