Why does my FICO score affect my insurance premium?
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Insurance scoring helps price your policy effectively. There is evidence that a person’s financial responsibility is an accurate predictor of future loss activity, so scoring has become commonplace for products such as auto and even power sports insurance. Bicycle insurance is no different.
The reassuring part: while insurance scoring uses information from your FICO score, it does not impact your credit score, and the only person who can ever see an insurance inquiry is you.
What does insurance scoring actually measure?
It measures financial responsibility, which is an accurate predictor of future loss activity. The more consistently a person manages their finances, the lower the expected losses tend to be, which is why insurers across auto and power sports lines use scoring to set fair premiums, and bicycle insurance follows the same logic.
How does an insurance inquiry affect my credit score?
Your credit score stays untouched. Insurance scoring reads information from your FICO score, but the inquiry does not impact the score itself, and the only person who can ever see that an insurance inquiry was made is you.
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