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Insurers Say Data Shows Low Credit Scores Predict Risky Driver Behaviors

November 3, 2021

The insurance industry says it now has hard data proving that if you have a bad credit score, you’re more likely to slam on the brakes or step hard on the gas.

Also if you’re less educated, unmarried, or sell real estate for a living.

The American Property Casualty Insurance Association released a white paper that it says validates auto insurance pricing decisions based on credit scores, marital status, education level and occupation. The research paper says telematics data collected from January 2017 to June 2019 shows that two behaviors that are known to correlate with increased claims cost — hard braking and hard accelerating — also correlate with insurers’ pricing practices.

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