Vantage Score

Joined: 31 Jul 2006 Posts: 516 13571 Magic Points

It is true that credit history affect the insurance premiums. I think they consider that higher is our credit score, the better driver we are and so lower is the premium. But like Carol, I too cannot find any relationship between the two.

Joined: 06 Jul 2006 Posts: 686 17396 Magic Points

I think that the companies link insurance rates with credit history to see whether the person can meet the insurance premium timely or not. If his credit history is good, the companies become sure that the person will be able to continue the insurance premiums and hence charge lower premium rates. On the other hand higher premiums are charged to people with bad credit history only to avoid the risk associated with it.

Joined: 08 May 2008 Posts: 364 4812 Magic Points

The woman I spoke to from Allstate said that generally they feel ppl with higher credit are more responcible.

Joined: 28 Jun 2006 Posts: 446 10878 Magic Points

Yes, actually people have high credit score and a good credit history only when they repay the debt on time. This is in turn reflected on the credit report. So the insurance companies feel that the people who have high credit score are more responsible and charge low premium rates from them.

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