One of the most surprising aspects of car and home insurance in Ohio is that something totally unrelated to your driving ability or the cost to rebuild your home may affect your premiums. Among the criteria many insurers use to determine rates, is your credit score. A low credit score could translate into higher premiums.
Why is credit information used to determine insurance rates?
Consumer credit information is used by most insurance companies in Ohio to decide what premiums to charge because research shows there is a direct statistical relationship between certain credit score information and the potential risk of loss by the consumer.
Is it legal in Ohio for the insurance companies to do this?
Yes. It is allowed by both Federal & Ohio law. There are safeguards in place to protect the consumer. You can find out more about your rights at the Ohio Department of Insurance’s website.
What can I do to improve my insurance rates?
To avoid unpleasant surprises you should obtain a copy of your credit report before you start shopping for car and home insurance. Doing so can give you a heads up about any errors on your report and allow you to correct them before a potential insurer sees them.
Also, individual insurance companies view how credit impacts your auto and home insurance premiums differently. As a result of this, premiums can vary dramatically between insurance companies. For this reason alone, you should shop your rates often or find an agent who automatically shops your insurance rates for you.