Is Auto Insurance Based on Credit History in New Mexico
Reader’s Question:
I would like to know if my auto insurance quotes are based on my credit in the state of New Mexico?
Lana
Albuquerque, NM
Most states insurance regulators permit car insurance providers to use a person’s credit record as part of the rating factors that can be used to determine the premium. New Mexico’s Insurance Division does permit insurance companies to check applicants’ credit.
Just because credit can be used as rating system does not mean that all insurance providers will run a credit check. This still depend on the insurance carrier’s underwriting guidelines and rating system.
Insurance rates are not merely determined based on credit record. There are other factors like where you live, driving record, the type of car, etc that also are factored in. If the auto insurance provider you are using does look at your credit score then it will help if the other criteria, like your driving record are clean and can help balance out a bad credit record with some rating systems.
