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MissouriFamilies.org - Money Matters - Consumer Action

 

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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