Locally Owned & Operated by Brown's Insurance Agency, Inc. 9168 Prince William Street Manassas, VA 20110 Tel. 703-368-0333

Keep Your Credit Rating Good

Credit rating? What's my credit rating got to do with my insurance? We've had to answer that question many times over the past few years. Most insurance companies that write homeowners and personal auto coverage are now using credit scoring as a factor in their rating. Insurance companies have discovered that, regardless of income level, people who maintain a good credit rating also have fewer losses under their insurance policies.

What this means is that insurance companies will give their best rates (lowest prices) to people with excellent credit ratings. People who have good but not excellent credit will get a good deal (but not the best). People who have only a fair credit rating will receive the worst rates (highest prices) when the insurance companies will quote them. And people with bad credit histories will fall below the level where many companies will even quote them.

Insurance companies don't only look at your current credit rating. Most of our insurance companies ask whether you have had a bankruptcy within the last seven years. And some of our companies ask whether you have EVER had a bankruptcy. If you have had a bankruptcy within the time frame that the insurance company asks about, we will probably not be able to place your coverage with that company. The company underwriters may make an exception under certain circumstances, but it is rare. We would be able to place your coverage, but through a different company, and at a higher price.

Who knew that your credit rating and a history of bankruptcy could affect your ability to buy insurance? Now you know.