How does credit-based insurance scoring help consumers?
Auto insurance companies can offer more products to more people. Since credit scores have been used, competition in the auto insurance market has increased significantly, leading to more choices for consumers. Increased competition in the auto insurance industry also enables financially responsible consumers to be rewarded with the best rates. Without the use of insurance scores, good drivers and responsible homeowners would pay more for car insurance, subsidizing those who are more likely to have a loss.
