Customers should not be alarmed about the introduction of credit scoring by Barclay's Insurance, commented Richard Mason from insuresupermarket.com.
"Some of the big insurers including the Admiral Group and More Than have been scoring customers according to their credit rating for a while," the price comparison website's director noted.
Mr Mason further said that whilst it is regular practice for customers to have their insurance premiums determined by their credit score, it is not necessarily the cheapest option.
He said customers should shop around for the most competitive insurance premiums.
"A customer with a better credit rating is just more likely to keep up their monthly payments. This saves insurers unnecessary administrative costs. Potentially, they are also less likely to claim," he explained.
However, all is not lost for customers with adverse credit problems. Because only a few insurance providers offer insurance premiums according to the policyholders' credit score, good value insurance cover is available.
"Shopping around is the best bet as most insurers base their premiums on a selection of criteria including relevant risk, type of car, postcode and claims history,” Mr Mason commented.
Insuresupermarket.com tries to make it easy for consumers to compare insurance products and services in the market, including car insurance, home insurance, travel insurance, pet insurance, medical insurance and life insurance.
The website helps consumers find the best and most competitively priced product for their needs, let them buy it online and help them save money.
Credit scoring no cause for insurance alarm, expert comments
Financial Services > Car lnsurance > News
Credit scoring no cause for insurance alarm, expert comments
Wed, 13 Jul 2005
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