How Do New Hampshire Auto Insurance Companies Use My Credit Info?


New Hampshire state sealCoverage providers in New Hampshire use credit information to decide whether or not to issue or renew a policy and to help determine an individual’s insurance premium, according to both the federal and state Fair Credit Reporting Acts (FCRA). This is done because many companies believe there is a link between motorists’ financial history and their likelihood of filing a claim.

The FCRA requires that insurers inform motorists if their credit info will have an adverse effect on their policy. This could include denying coverage, canceling a policy, or altering the terms of a plan in any way that harms the motorist.

Motorists shopping for New Hampshire car insurance should ask a series of questions to better understand how their financial history may be used. Drivers should inquire:
  • If this info will be used for underwriting
  • How it affects the driver’s eligibility
  • If it will be used for rating
  • How the premium will be affected
  • If the credit information of family living in the same household will have an effect
If a coverage provider incorrectly rates a motorist because of erroneous credit information, the person in question should contact the credit bureau and inform them of the mistake. Generally, if a financial error is reported in writing, the credit bureau will investigate the mistake and respond to the motorist within 30 days. After all mistakes have been rectified, insurers are likely to produce more accurate quotes.
United States flag shaped as New Hampshire
Fortunately for some motorists, premiums are not entirely based on financial history. Insurers typically examine a wide range of details that are used to determine a motorist’s risk of filing a claim. This can include a driver’s age, location, vehicle information, and accident record, among many other details. Furthermore, individual companies also employ different methods when rating motorists. To best utilize these potential differences, residents should make multiple New Hampshire auto insurance comparisons in search of the lowest priced policies available.

In the Granite State there are many different insurers to choose from, and each one may give different weight to an individual’s credit info. To evaluate a wide range of estimates in a short amount of time, drivers should search for quotes online. Tools available on the Internet can usually produce dozens of estimates on one website, giving drivers a better chance of finding an adequately priced insurer.