Several independent studies have proven a strong connection between credit history and the likelihood of an individual filing a claim.
According to the Texas Department of Insurance there is a clear and conclusive relationship between a consumer’s credit history and the probability they will file insurance claims.
The department of insurance found that the use of credit information makes pricing more accurate and results in the majority of the population paying less for auto and homeowners insurance policies. These findings were supported by previous studies conducted by independent researchers that have demonstrated that credit information is among the three most important variables used by insurance companies.
