Until about 15 years ago, auto insurance companies in Ohio all used the same criteria to develop their car insurance premiums. Your age, where you lived, what kind of car and how you drove it, aong with your driving record, were the key factors in determing how much they would charge you for auto insurance protection. That all changed when statistical evidence proved that how a person manages credit can predict whether or not he or she is likely to have an insurance claim. Now, your Ohio insurance score is a major factor in what you will pay, sometimes more important than your driving record!
Similar to a bank that sizes a person up on how likely he or she is to repay a loan, insurance companies use a persons credit history to determine how likely they are to pay claim. There are several different Ohio insurance scoring models used. Insurers do not use your credit score, although elements of you credit history are a part of your insurance score. Generally speaking, young people’s insurance scores are not as favorable as older persons. That is because an established credit history and having many open accounts in good stading takes time. Other important ways to improve your score is to not have late payments and past due acounts, and to have low balances on your accouts. Insurance scoring does not take into account how much money you make or how long you’ve been at your current job. In today’s economy more and more people are relying on credit, and insurance scores can be negativly impacted.
Ohio car insurance premiums vary widely in Ohio, in part because your insurance score varies with each company. Insurance companies usually will need your date of birth and either your drivers license number or social security number to get your score. It does not negatively affect your credit history to have your score run. The best piece of advice we have to offer is to shop around for the best deal, because premiums can vary widely, based on your Ohio insurance score.