"I have no idea if they do this but I do know that when we retired and moved back to Pennsylvania from Virginia we called Geico for a rate. We then called Allstate, Progressive and State Farm. Allstate was the cheapest for the same coverage on all quotes."
Yes, they do this. GEICO (others perhaps) use you credit score as well, which has nothing to do with driving habits. I know, GEICO sent me a letter.
In their minds, a good credit rating means your good at other aspects of your life, bill paying, law abiding, etc. I'm sure they've done regressions on this and mapped the correlations.
Most likely, people with high credit scores are more likely to pay middling damages out of pocket rather than submit claims (because they have the resources to do so, and because they understand that it's cheaper in the long run to avoid the resulting rate increase).
Yes, they do this. GEICO (others perhaps) use you credit score as well, which has nothing to do with driving habits. I know, GEICO sent me a letter.
A high credit score is generally taken to indicate a serious minded person who accepts responsibility and is therefore used in screening job applicants etc. A low score could indicate the opposite or merely an extreme run of bad luck but is generally viewed as not indicative of a stable and reliable temperament.