Credit Checks For Auto Insurance?

Insurance quote now comes the credit check

It's true. Some of the insurance companies check your credit rating, when they are insuring your vehicle. Why? The actuarial tables show that people who have great credit, have less accidents. Perhaps they do not proceed with small claims because they have greater financial resources. Another thought could be that they have less to worry about, and so are more attentive when driving.

If you have an excellent credit rating, then certain companies might give you a better price. If your credit rating is not good, then you would be best to avoid these companies.

The insurance regulators have examined this practice and to this date, have not ruled it unfair. It will likely become more common as time goes on.

Talk to your agent or broker about your situation. There has been a ruling by the Registered Insurance Brokers of Ontario (RIBO) that a broker is required to make a reasonable effort to inform the individual as to why personal information is being requested. Also the broker is to ensure that the individual is advised for what it will be used for and with whom it will be shared.