Credit Rating – Homeowners and Personal Auto
Why does my credit rating affect how much my insurance
This is a great question, and one that our customers ask
There have been a number of studies in Texas and other states
that have shown a direct relationship between credit and claims.
The state of Texas allows credit as a rating factor because
the impact of credit can be proven like other factors including
prior claims, driving experience or the age of a home.
For example, we know that more young drivers will have accidents
than experienced drivers. Even though not every young driver
will have an accident, they all pay more for insurance. And
everyone else pays less. The same is true when credit
ratings are used to develop premium for auto and homeowners
policies. Those with good credit ratings typically pay
less for their policies.
This article was prepared and made available
to your agent by the Independent Insurance Agents of Texas,
which is solely responsible for its content. Please read your
insurance policy. If there is any conflict between the information
in this article and the actual terms and conditions of your
policy, the terms and conditions of your policy will apply.
The Independent Insurance Agents of Texas is a non-profit
association of more than 1,500 insurance agencies in Texas,
dedicated to helping its members succeed, in part by providing
technical resources that explain insurance policies sold to