Insurance agents often check your credit report as part of the process of giving you a quote on auto insurance. Because statistics have shown that drivers with a low score are more likely to make car insurance claims than drivers with a high score, insurance companies often include credit history in their formulas for calculating a driver’s risk. Rather than using traditional credit scores, insurance companies generally use an insurance risk score, which is based on information on your credit report, but is skewed toward the data that is most closely linked to auto insurance claims.

While having exceptionally good credit won’t get you a discount on your auto insurance rates when compared to having decent credit, you may end up with higher rates if you have exceptionally bad credit. By law, insurance companies are required to let you know if your credit report affected your insurance rates, and to give you instructions on how to get a copy of your report.

To ensure you’re getting the best rate possible, it’s important to maintain your credit score by paying your bills on time and not taking on more debt than you have to. You should also check your credit report for accuracy before applying for auto insurance in Greenbelt, Cloverly, and surrounding areas. If you find errors, it’s easy to file a dispute and get them corrected.

Insurance may seem like a dull subject, but, as with any topic, there are interesting facts and statistics to be found. Next time you’re out enjoying a cup of coffee in Adelphi, Burtonsville, or anywhere else in Maryland, start a conversation with one of these odd insurance statistics:

• There is a car accident in the US every 8 seconds.
• Here’s one for the current rough economic times: for every 100 newly unemployed people, there will be 75 new people driving without car insurance.
• Washington D.C. is the most dangerous place to drive, with 3.2 fatalities per 100,000 people.
• Hawaii, on the other hand, isn’t just one of the prettiest states; it’s the safest. Traffic fatalities number just 1.9. per 100,000.
• The national average cost for a car insurance policy is $1567. Hawaii’s is cheapest, while Maryland falls just a little above the middle of the pack.
• Seat belts significantly lower the risk of injury during an auto accident. For this reason, all cars, by law, have had to have at least lap belts since 1968.
• The basic concepts behind insurance date back to the Code of Hammurabi. These laws allowed for banks to lend traders the value of the goods they were transporting. If the shipment arrived safely, the loan was repaid, plus interest. If it did not arrive, the loan was forgiven.