Many insurance companies look at your credit history before they offer you a quote on your home or auto insurance. Insurance companies have found if you are responsible how you use credit, you will also be a responsible home or car owner. In short you will take care of your home and car.
Insurance scoring has been controversial and a many states including Oregon, limit how insurance companies can use your credit score.
Insurance Companies in Oregon Can Not:
- Use your credit score to raise your premiums on your current auto or home policy.
- Refuse to renew or cancel your insurance because of your credit history.
- Your credit information can not be the only factor to decide whether or not you are eligible for insurance. Other factors like your driving record, type of car etc must be contributing factors why you are insurable or not.
Insurance Companies in Oregon Can
Use your credit information when deciding whether or not to issue you a new homeowners or auto insurance policy, but only if it is part of their overall evaluation system that uses other factors and they can document that it helps them predict future claim costs and price your insurance policy. Most insurance companies also use your driving record, where you live, claims history, and other factors, like type of car, your age and sex. If credit history is used, insurance companies and agents must:
- Explain how the company uses credit information before running a credit check.
- Notify you before running a credit check.
- Explain how a poor credit rating could effect you such as higher premiums etc.
Insurance Consumers Can:
Request copies of your credit report from the credit bureau. You want to make sure the information contained in your credit report is accurate. Correct any mistakes or inaccuracy contained in your credit report.
If your credit has improved over the last year, you can request your insurance company re-rate your auto or homeowner insurance. It’s possible that your insurance premiums may decrease if your credit rating has improved.
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