Professor Blankson Discusses Credit Score Impact on Auto Insurance

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Original article by Michelle Megna, / December 8, 2021​​​​​​​

Charles Blankson, Ph.D., professor of marketing at the University of North Texas, explains how drivers’ credit scores can impact their auto insurance rates and discusses why insurance companies often rely on this information. He considers this issue both from a consumer and insurer perspective.

Blankson observes that there are several advantages and disadvantages of factoring a drivers’ credit into setting auto insurance rates, including:

  • Pro: Consumers who receive a price break due to their strong credit history may be motivated to keep their credit rating healthy
  • Con: If credit scores cause some drivers to be priced out of the market, it could open the possibility for some individuals to be tempted to drive without insurance

While Blankson believes it makes sense for insurers to weigh credit history into rate calculations, he asserts that there should be a certain degree of flexibility enabling those lacking a good credit score to benefit from reduced premiums as they build stronger credit. 

In the published article, Blankson expands on the items above and encourages insurance companies to build customer loyalty by providing excellent client service over the long-term.

READ THE FULL ARTICLE HERE: Why should my credit history count?