I read in my local paper that I may be able to save money on my car insurance if my credit is good. How can I find out more about this?
Most insurance companies use credit history to decide whether you're eligible for car or home insurance and also to determine how much to charge. Insurance companies have determined that credit information can predict how likely it is that you will file a claim. The use of credit history is legal in Oregon, but there are important safeguards in Oregon law. Insurance companies may only use credit information for new applicants, and they must also take into account other information like your driving record or claims history. Once the policy is issued, the company cannot use credit information again without your permission.
Until recently, consumers were taking a chance if they asked the insurance company to use updated credit information because it could lead to higher rates. The law has been changed so that a consumer request for the use of current credit information may only be used to reduce rates.
You will need to contact your insurance company or agent to see if you can save money based on current credit information. We recommend doing this in writing so you have proof of making the request.
Additional information about credit scoring is available on our website, http://www.insurance.oregon.gov/consumer/auto-insurance/auto-insurance-2a.html.
