Along with your driving history and type of vehicle, your credit score can influence what you pay for auto insurance. Here are some answers to common questions about how your car insurance premium is determined.
How Your Credit Affects Your Insurance Score
Some of the rating factors that influence your auto insurance premiums include:
- Age or driving experience
- How your vehicle is used
- Driving and claims history
- Claims history
- Geographic location
- Credit history
- Make and model of your vehicle(s)
Make and model not only influences your auto insurance premiums, it can also change the type of car insurance you need. For example, Classic car insurance is specifically designed for the unique needs of those who appreciate the classics.
Nationwide uses a credit-based insurance score when determining premiums. Studies show that using this credit-based score allows Nationwide to better predict insurance losses. In fact, 92% of insurers also consider credit when determining auto insurance premiums.
For the credit portion of your insurance score, these factors are important:
- Payment history, including delinquencies or late payments
- Length credit history
- Types of credit, such as credit cards and loans
When determining your car insurance credit score, sex, marital status, age, ethnicity, address and income are not considered.
A credit-based insurance score allows insurers to quote the fairest, most appropriate rate for every customer. About half of our existing customers receive a rate decrease based on credit score.
Insurers do not look at credit the same way a financial institution does. Insurers consider only the items that are relevant to a potential loss.
Nationwide has many safeguards to ensure the confidential and responsible handling of your personal information:
- The only employees who would see your information are those who need it to provide products or service to you or to conduct Nationwide business. These employees may use your information only for legitimate business purposes.
- A Nationwide associate will never view your actual credit report.
Visit the Federal Trade Commission for more consumer credit information and resources that explain how you can improve your credit score.
At Nationwide we value our customers. We have an extraordinary life circumstance process that applies in all states. If your credit information has been directly influenced by one of the following events, you may qualify for reconsideration of your premium.
- Catastrophic event as declared by the federal or a state government
- Divorce or dissolution of marriage
- Death of a spouse, child or parent
- Serious illness or injury, or serious illness or injury to an immediate family member
- Temporary loss of employment for three months or more, if such loss is due to involuntary unemployment
- Military deployment overseas
- Identity theft
- Total or other loss that makes a home uninhabitable
For further information, contact your Nationwide agent. We may require you to provide reasonable, independently verifiable documentation of the event and an explanation of how that event had meaningful impact on your credit information.