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Quick Answers...Finance/Credit |
Do insurance companies use my credit report in decisions on granting policies?
Large insurers routinely use information in credit reports
to decide whether to grant a policy, renew one or offer a
preferred rate. In some states as many as half of all
decisions regarding home and auto insurance may include
credit history as a factor. The companies maintain that the
credit information helps them spot insurance risks - but
there is little evidence to support that point of view.
If you have been denied insurance and appeals to the company
have been unsuccessful, ask the company to put the reason
for the denial in writing. If you believe your insurer used
your credit history incorrectly or unfairly, complain to the
state insurance department. In Missouri, see the Missouri
Department of Insurance website at
http://insurance.mo.gov/.
Be sure your
credit reports are up to date and accurate.
Source: Consumer Reports Feb. 1997
Written by Sandra McKinnon and Cynthia E. Crawford, Ph.D., Family Financial Education Specialists, University of Missouri-Extension
Last update: Sunday, April 23, 2006
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