Driving up your insurance risk score

Dear Audrey, 

I have a question about credit scores being used to calculate auto insurance premiums. I understand Washington State, where I live, has made the practice illegal. Can you provide details?

I just renewed my auto insurance and was hit with a surcharge for my credit score. The next renewal is in May and I want to be prepared.

Brian K.

Dear Brian,

It is true that Washington's insurance commissioner recently proposed regulations on the use of credit scores for auto insurance. These policies basically set guidelines for how and when insurance companies can use your risk score to determine rates. This proposal includes a clause that requires insurers to inform consumers of the facts that led to a rate increase.

Talk to your insurance agent to get the facts behind your surcharge. If it was due to your credit score, you should research your rights, start working on your TransUnion, Equifax and Experian credit scores and shop around for an insurance rate. If your score is below 640, you should work on improving it by maintaining a healthy balance of credit and debt and always paying your bills on time. If you order your credit reports and scores from www.truecredit.com, you'll get  a personalized analysis of your scores.

Best wishes,

Audrey O'Dell