MURFREESBORO, Tenn. (WMOT) -- Most Tennesseans are likely not aware that their credit scores can have an impact on what they pay for car insurance.
A study published recently by the personal finance website Wallethub.com says that auto insurance rates charged Tennesseans can vary by as much as 78 percent depending on the buyer’s credit rating.
Odysseas Papadimitriou is the Wallethub CEO.
“As we very well know, credit reports are full of errors and so your car insurance premium may be higher than it should be. Not because you deserve it, but because the credit report your insurance company is using has an error on it.”
Papadimitriou notes that consumers can check their credit scores for free and should do so on a regular basis to look for errors.
He says Allstate appears to be the company that relies on credit data the most when determining premiums, while State Farm seems to rely on credit data the least.
Would you like to review the original Wallethub article?