I noticed something very peculiar on my home insurance. My parents have horrible credit, so last year they purchased a van in my name, with a finance plan. A few months ago, my father was involved in a car accident where the car was totaled and insurance only covered 23,000 of the 25,000 due.
We went looking for a van and purchased the similar model in September, under my name again. paying the debt in full increased my credit score to roughly 748; funny thing is, my home insurance went from 839 to 863, but I’m assuming after the purchase of the van, significantly went down to 754, which is considered very poor.
I did not know that car insurance claims are tied to this, can anyone verify that this is the case, or was it the 2 hard inquiries from the car buying process? Could it be the fact that I’m taking on another loan of roughly 27,000 after paying a car debt of 25,000?
Not that I’m buying a home anytime soon, but I was just curious and thought I’d ask.