3 credit factors that might affect your auto & homeowner’s insurance premiums

(BPT) - People think of their credit scores when measuring their "creditworthiness," like when they're looking to take out a loan, buy a home or open a new credit card. But did you know your insurance credit score can affect your auto insurance premiums too?

Before auto insurers take you on as a policyholder, they might use your credit score as an indicator to evaluate how likely you are to file a claim. If your score doesn’t fit within their standards, you may get charged a higher premium. On the other hand, some insurance scores are loss ratio models, so they actually rank you based on the probability that you’ll be a more profitable customer.

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