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Credit Scores and Your Insurance Rates
In the good old days, credit reports were used in the insurance industry only for rating homeowner's insurance premiums. Over the past few years, credit scores have taken a much larger role in the underwriting of insurance. Now, credit scores affect most Property & Casualty insurance, such as auto, motorcycle, and commercial insurance. Even if you haven't had a ticket, accident, or claim in the past three years, you could be paying high risk premiums because of your credit score. How did this happen? Credit reporting agencies and insurance companies ran statistics and determined that people rated as financially responsible are less likely to file claims against their insurer. 
Different insurance companies have different credit guidelines, so one company could label a person as an "unacceptable risk" and another company could label the same person as a "superior risk". There are very few preferred risk auto insurance companies that do not use credit scoring to underwrite insurance. Even the number of high risk insurers that do not use credit scoring is quickly diminishing (Note: high risk companies don't decline applicants based on credit, but credit rating does affect the premium).
Credit Factors That Can Affect Your Rate
Bankruptcy Foreclosure
Reposession Judgements
Collection Accounts Late Payments
High Credit Card Balances Too Many Credit Inquiries
Insufficient Credit History Tax Liens
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