Progressive Auto Insurance: Understanding The Credit Check Factor

Progressive, like most other auto insurance companies, uses credit-based insurance scores to help set insurance rates. Progressive checks credit history when a customer requests a quote, and in states where it is allowed or required by law, the company periodically reviews policies, including credit history. Progressive does not use information about credit history solely to refuse to insure a customer or to cancel a policy. Instead, credit history is one of many factors that help determine a customer's insurance score, which is used to predict the likelihood of a future accident or insurance claim. Progressive also considers factors such as driving record, vehicle type, age, gender, and location when determining insurance rates.

Progressive uses credit information to determine insurance rates

Credit has been proven to be a powerful and independent predictor of future accidents or insurance claims. The use of credit history provides an additional predictive factor—one not offered by other factors such as driving record, vehicle type, age, etc. Progressive's data shows that customers with the worst insurance scores are twice as likely to have an accident or insurance claim as those with the best scores. Progressive also determines rates based on acquisition and operation costs.

Depending on the state, Progressive uses credit-based insurance scores and considers other factors such as the type and value of the vehicle, the customer's driving record, location, gender, age, and other factors to determine the insurance premium. Each state sets its own regulations for credit-based insurance scores, so the exact information that goes into the score may vary. Progressive periodically reviews policies, including credit history, in states where it is allowed or required by law.

While a good credit-based insurance score can get a customer a better rate, it's only one factor that goes into a car or home insurance quote. Progressive offers multiple car insurance discounts to help customers save on their auto insurance, such as multi-policy bundling, pre-paying a six-month policy, and multi-car discounts.

Progressive doesn't use credit history to refuse insurance or cancel policies

Progressive does not use credit history as the sole reason to refuse insurance or cancel policies. Progressive, like other insurers, uses insurance scores and other underwriting tools and rating variables to place customers in groups, determine potential insurance claims risk for those groups, and calculate accurate rates based on the potential risk that each group represents. Progressive's use of insurance scores has allowed them to offer lower rates to more customers.

Credit has been proven to be a powerful and independent predictor of future accidents or insurance claims. The use of credit history provides an additional predictive factor—one not offered by other factors such as driving record, vehicle type, age, etc. Progressive's data shows that customers with the worst insurance scores are twice as likely to have an accident or insurance claim as those with the best scores.

While specific state laws govern Progressive's use of credit, they do use credit information when determining rates. Progressive checks credit history when a policy renews in states where it is allowed or required by law. Progressive periodically reviews policies, including credit history, in these states. Progressive representatives do not see customers' credit reports or know their insurance scores, as this information is automatically requested by software systems.

Progressive uses insurance scores as one of many factors when determining rates. Depending on the state, Progressive also considers driving records, vehicle type, location, gender, age, and other factors.

Progressive doesn't check credit history when a policy renews, unless required by law

Progressive, like many other insurers, uses insurance scores to place customers in groups, determine potential insurance claims risk for those groups, and calculate accurate rates based on the potential risk that each group represents. Progressive does not use information about credit history solely to refuse to insure a customer or to cancel a policy. Progressive uses credit-based insurance scores to determine rates. An insurance score is a number that's used to predict your odds of filing an insurance claim and the cost of that claim. It's mostly calculated from your credit history, so it's also referred to as a "credit-based insurance score." A better score may result in a lower insurance rate.

Progressive does not check credit history when a policy renews, unless required by law. In states where it is allowed or required by law, Progressive periodically reviews policies, including credit history. Progressive's use of insurance scores has allowed them to offer lower rates to more customers. Progressive data shows that consumers with the worst insurance scores are twice as likely to have an accident or insurance claim as those with the best scores.

While specific state laws govern Progressive's use of credit, this is a general overview of their practices. Progressive does not use credit information to discriminate unfairly. Insurance credit reports do not contain any information on income, race, colour, creed, physical handicap, or disability. Progressive's software systems automatically request your credit report, so Progressive representatives do not see your credit report or know your insurance score. Progressive's inquiry will only be visible to you and the credit reporting agency.

Progressive's credit inquiry won't affect your credit rating or be visible to other companies

Progressive, like many other auto insurance companies, uses credit-based insurance scores to help set insurance rates. This is because credit history has been proven to be a powerful predictor of future accidents or insurance claims. Progressive uses insurance scores to place customers in groups, determine potential insurance claims risk for those groups, and calculate rates based on the potential risk that each group represents. Progressive does not use information about credit history solely to refuse to insure a customer or to cancel a policy. In fact, Progressive states that its use of insurance scores has allowed it to offer lower rates to more customers.

When Progressive checks your credit during a quote, it will not affect your credit rating. The Progressive inquiry will only be visible to you and the credit reporting agency. Other companies viewing your credit report will not see the inquiry. Progressive representatives do not see your credit report or know your insurance score; this information is only accessible to Progressive's software systems. Progressive collects credit information based on multiple personal characteristics, including Social Security number, address, birth date, and relocation status, to ensure that the credit information obtained is yours.

In certain states, Progressive periodically reviews policies, including credit history, if allowed or required by law. It's important to note that insurance credit reports do not contain any information on income, race, color, creed, physical handicap, or disability, ensuring that the use of credit information is not unfairly discriminatory.

While Progressive does consider credit-based insurance scores, it is just one of many factors that go into determining insurance rates. Other factors Progressive takes into account include your driving record, type of vehicle, location, gender, age, and other variables.

Progressive doesn't see your credit report or know your insurance score

Progressive, like many other insurers, uses insurance scores to place customers in groups, determine potential insurance claims risk for those groups, and calculate accurate rates based on the potential risk that each group represents. Progressive does not use information about credit history solely to refuse to insure a customer or to cancel a policy. Progressive's use of insurance scores has allowed them to offer lower rates to more customers.

Credit has been proven to be a powerful and independent predictor of future accidents or insurance claims. The use of credit history provides an additional predictive factor—one not offered by other factors such as driving record, vehicle type, age, etc. Progressive's data shows that consumers with the worst insurance scores are twice as likely to have an accident or insurance claim as those with the best scores.

While Progressive does use credit-based insurance scores, their software systems automatically request your credit report, so your Progressive representative does not see your credit report or know your insurance score. Progressive's inquiry will only be visible to you and the credit reporting agency. Other companies viewing your credit report will not see the inquiry.

In states where it is allowed or required by law, Progressive periodically reviews policies, including credit history. Progressive does not use credit information to discriminate unfairly. Insurance credit reports do not contain any information on income, race, color, creed, physical handicap, or disability.

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