Auto insurance is considered as an agreement among you and the insurance company which covers the car damage which has occurred at the time of accidents or any sort of trouble which takes place. The buying of insurance comes with various coverage’s which will benefit in the long run.
These scores are used to predict that you had an accident or ever filled for the claim. They calculate your score by the information they receive from the credit reports. Like credit scores, FICO scores the auto insurance company has come up with their own model in order to check the scores.
Every auto insurance company has its way of determining the score which they take from the credit information which builds the insurance score. There are chances companies are having a tie-up with companies that determine the FICO score.
There are some factors which companies check such as
- Payment Records: 40%
- Outstanding Debt: 30%
- The time period of credit: 15%
- New credit: 10%
- Credit experience: 5%