Shocked woman looking at document © bokan/Shutterstock.com

Dear Insurance Adviser,

My insurer recently doubled my homeowners and auto insurance premiums. When I asked why, the company told me that my credit score had dropped from 815 to 735. Is this a reason to double the price of my insurance?

— Jesse

Dear Jesse,

Credit scoring has been a factor in insurance pricing for several years now. But it’s extremely unlikely that a 10 percent drop in your credit score would double your rates on both your automobile and home insurance policies.

Compare home insurance quotes

More likely, your rates would increase 10 percent to 20 percent.

Some of the increase could be due to just a general rise in rates — especially on homeowners insurance, which has been hit hard with storms the past few years. Your automobile insurance rates may have increased because of tickets or accidents in the family.

Your current credit score of 735 is still excellent and will qualify you for preferred rates in most insurance companies. The question before you now is not: Why did your rates go up? Rather, it’s: Are they still competitive? Ask your agent to shop your policies for you. That way, you can be sure that you have a true “apples-to-apples” quote.

Credit scoring has been a factor in insurance pricing for several years now. It is a fact that people with good credit have fewer claims. As long as that remains true, credit will be a factor in insurance pricing well into the future.

Good luck!

Ask the adviser

To ask a question of the Insurance Adviser, go to the”Ask the Experts” page and select “Insurance” from the drop-down box. Read more Insurance Adviser columns.

Bankrate’s content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate’s Terms of Use.



More On Credit Scores And Insurance:

Promoted Stories