GEICO's Credit Use - Frequently Asked Questions

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Regarding GEICO's Use of Credit Reports

Please note: When you have asked for a rate quote, GEICO may request credit information in accordance with applicable state law. If GEICO does not use credit information for underwriting in your state, your credit information will not be utilized.

Why does GEICO need my credit information?

In some states GEICO, like many property and casualty insurers, uses information collected from consumer reporting agencies such as your driving record, credit, and claims history in order to offer you the most appropriate rate.

At GEICO we understand the importance of your privacy. The information that we obtain will be kept confidential and secure, and will not be sold or redistributed. To learn more about how GEICO protects your personal information, please review our Privacy Policy.

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What is a credit-based insurance score? Why does GEICO use them?

The credit-based insurance score is a number determined from items in your credit report, such as payment history, collections, length of credit history, and credit utilization in states where such a tool is permitted.

GEICO uses your credit-based insurance score as legally permitted and in conjunction with many other factors to predict how likely you are to file a claim and/or how expensive those claims will be.

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What is the difference between a credit-based insurance score and a credit score?

The credit-based insurance score predicts the likelihood of a future loss of an individual insurance policyholder or applicant; a credit score predicts the likelihood of future delinquency on credit accounts of a credit prospect or customer.

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What does my credit history have to do with how I drive my car?

Research has shown that consumers with better credit-based insurance scores generally file fewer claims and have lower insurance losses.

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How does my credit-based insurance score affect my GEICO policy?

Your credit-based insurance score is only one factor in our underwriting and rating processes. When you contact GEICO we collect information about you, including your personal information (such as name, address, and date of birth), information about other people who drive your car, the driving history of each driver, and the number and types of cars you drive. You will never be denied a GEICO policy solely because of your credit-based insurance score. GEICO does not use credit-based insurance scores in states where prohibited by law.

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Why does GEICO use this information to determine my premium?

All insurance companies base their premiums on how likely it is that a person will have an accident. Credit history, in conjunction with other factors including driving record, driving habits, type of car, etc., are used to determine the most appropriate rate as permitted by state law. Your premium at GEICO will never be based solely on your credit-based insurance score. GEICO does not use credit-based insurance scores in states where prohibited by law.

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Do I have any rights if my credit history affects my rate or eligibility for insurance?

Absolutely. If GEICO has taken an adverse action against you (such as offering you a higher rate) as the result of information contained in your credit report, you may obtain a copy of your credit report. If you believe there are errors in the report, you should immediately notify the consumer reporting agency. GEICO does not use credit-based insurance scores in states where prohibited by law.

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What do I do if the credit report is wrong?

If there is an error on your credit report, contact the consumer reporting agency directly and notify them of any discrepancy. Once they change it in their records, please contact us and we will be happy to re-evaluate your quote.

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What happens if I have a special circumstance that has negatively impacted my credit history?

If your credit history has been impacted by an extraordinary event such as a medical crisis, temporary loss of employment, the death of a spouse or a household member, identity theft, the personal guaranty of a business loan, or a catastrophic event, we will take the special circumstance into consideration so it does not negatively impact your rate. We may require you to provide documentation of the special circumstance. GEICO does not use credit-based insurance scores in states where prohibited by law.

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What did my credit report say?

In order to maintain confidentiality we do not see the actual report. When permitted by state law, we receive a credit-based insurance score that relates a person's credit history to the likelihood of having an automobile accident. Our sales and service representatives do not have access to your credit-based insurance score. When GEICO requests your insurance score, the inquiry in your credit file will only be visible to you. If another entity views your credit report, they will not see the inquiry and it will not affect your credit score or credit rating. GEICO does not use credit-based insurance scores in states where prohibited by law.

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Which are the three major credit bureaus in the U.S.?

They are Experian, Equifax, and TransUnion. Each bureau collects information on your accounts and payment habits from individual creditors. Some creditors report information to all three credit bureaus, while others may only report to one bureau.

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