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Insurance companies are in the business of making money. They need customers who will pay premiums and won't file a claim. After years of extending coverage and paying claims they have actuaries that can figure out exactly the kind of customer they want to target. They know who is more likely to file a claim and they charge those customers more for insurance coverage. In addition to the normal demographics used to decide this ideal customer (age, address, driving record, previous claims), more companies are using credit profiles to underwrite their policies.