A person’s credit score has proven to be a strong indicator of the likelihood a customer will file a claim. Credit-based insurance scores are not used in the same way as traditional credit scores. While traditional credit scores are used to predict the likelihood that a consumer will default on a loan, credit-based insurance scores are used specifically for insurance purposes to predict the likelihood that an individual will file an insurance claim. Studies show a strong relationship between credit-based insurance scores and the frequency and severity of claims.
We are reaching out to our clients advising them of the availability of a possible credit score discount.
We are unable to apply for your credit score rating without your verbal or written consent. Consent must be received from you to your insurance broker, and cannot be provided on behalf of another person. Consent will remain valid for as long as you remain a customer, or until you withdraw your consent in writing.
Once your insurance broker obtains your consent, the score is electronically requested from a credit score provider. Credit score information is then sent through a secure data transmission channel and is automatically applied to the calculation of your premium, along with all other rating factors.
As long as your insurer has your consent, they will access your credit score annually, just before the renewal of your policy. Again, this will not impact your credit rating, and your rate will not increase due to an unfavorable credit score.
Contact us to see if you qualify for a credit score discount on your insurance policy. Trust us to give you the information you need to make an educated insurance decision.
Farrell Agencies offers these apps as a value-add service to its clients. Use this app to enhance your Auto & Property Insurance experience. If you haven’t already, download our apps today.