Understanding How Your Credit History May Affect Your Car Insurance Coverage
Many personal auto insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new insurance, keep in mind that many insurers are looking at your credit history. I hope that we will be able to let you know why and how they do this. The reason that some insurance companies use credit information is because they feel there is a direct correlation between consumer's credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to severe insurance losses.
Many insurance companies still use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet, the companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums. The companies that do use credit scoring will still use other factors in determining your premium. They will also use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance.
Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair credit-reporting act says "Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title." This can be found at http://www.ftc.gov/os/statutes/fcra.htm If you feel that your credit history is better then the insurer can find, make sure the insurer has your correct name, address, social security number, and date of birth. Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an "insurance credit score." An insurance credit score is developed by using statistical techniques and methods to predict the likelihood a consumer will have a higher than anticipated losses. These are similar to what lenders use to predict the reliability of an applicant repaying a loan.Insurance companies use many factors in determining your credit score.
Here are some examples of those factors:
- Public records: bankruptcy, collections, foreclosures, liens, charge-offs, etc.
- Past payment history: the number and frequency of late payments and the days between the due date and late payment date.
- Length of credit history: the amount of time you have been in the credit system.
- Inquiries for credit: the number of times you have recently applied for new credit, including mortgage loans, utility accounts, and credit card accounts.
- Number of open lines of credit: the number of credit cards, whether you use them or not.
- Type of credit in use: major credit cards, store credit cards, finance company loans, etc.
- Unused credit: how much you owe compared to how much credit is available to you.
Since each insurance company uses different techniques to determine your credit score it is hard to tell you what a good credit score is. Usually a good credit score will result in lower premiums. Your agent or company is not obligated to tell you your credit score. In fact, they might not even know what it is. All they usually know is that your credit score qualifies you for a specific rate or policy.
Some companies also offer better rates under each qualifying tier. If you feel that there is incorrect information on your credit report, you should tell the credit bureau. If you report and error, the credit bureau must investigate the error and get back to you within 30 days. You can ask the credit bureau to send a notice of the correction to any creditor or insurer that has checked your file in the past six months. Once the errors are corrected, it is a good idea to get a new copy of your credit report several months later to make sure the wrong information has not been reported again.The three national credit bureaus are:
- Trans Union (www.transunion.com or 800-888-4213)
- Equifax (www.credit.equifax.com or 800-685-1111)
- Experian (www.experian.com or 888-397-3742)
Do not wait until the credit bureau investigates the errors to contact your insurer. Tell your insurance company right away and ask if the errors will make a difference in your insurance. If the errors are big, tell your insurer that you are disputing the information and ask if they will wait to use your credit information until the errors are corrected. Small errors may not have much affect on your insurance credit score. If the errors are big, it can make a significant difference in your premium.
Some companies are unable to adjust the premiums until the score is corrected, but it does not hurt to ask. If you have taken the steps to improve your credit, score you should ask your insurance company to re-evaluate your credit score at renewal.Visit http://www.carinsurance.com For Lowest Rates Available.
Jon Register is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728. CarInsurance.com's online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online. Consumers can receive quotes from many insurance companies, in some states you are able to purchase your insurance instantly, online. You don't have to drive your car to buy car insurance. Buy online...anytime!Time For A Move? What You Need To Know About Changing Broker/dealers
Why do advisors change broker/dealers? The reasons are as varied as the advisors themselves, but here's the short list:Advisors are unhappy with their current relationship. This is largely because of things like the consolidation of insurance companies and banks where significant management changes have altered firms' relationships with buyers.Insurance companies that had been buying up broker/dealers for the past 20 years are starting to divorce themselves of these relationships. That kind of uncertainty is not too relaxing.Management changes resulting from the consolidation of insurance companies and banks have altered these firms' relationship with buyers.Advisors want increasingly better business support and marketing services, better product offerings, higher payouts and state-of-the-art technology from their broker/dealer.Broker/dealers are paying much more attention to E.
Jonathan Henschen, CFS, President of Henschen Time For A Move? What You Need To Know About Changing Broker/dealers
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Online Car Dealers
Automobile dealers are increasingly using the Internet to market new and used cars. Through web sites, consumers can easily access vehicle reviews, view pictures of vehicles, and compare models, features, and prices. Many web sites also allow consumers to research insurance, financing, leasing, and warranty options. As a result, consumers are generally better informed and spend less time meeting with salespeople.
Online car dealers work with an authorized network of car dealers all over the country. This makes it easier for them to find the vehicle the customer is looking for, locally.
They search the inventory of all the network dealers in the customer's area to find the right vehicle for their customers.
Their extensive network of car dealers also ensures that the consumer has one of the largest selections of makes and models available to choose from. Online car dealers offer nearly every type of car and truck available for sale. They also offer extended...
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How To Be Your Doctors Favorite Patient
First of all, let me explain something in case you don't already know. The more your doctor and his staff like you, the better service you will receive. It's just a plain fact and human nature. Most doctors are swamped with patients and have to make choices when appointing patients to their schedule. So how do you get the only appointment left on next Tuesday, you day off?
Asking for an appointment: Make or break the relationship.
Depending upon how large the practice is, there is probably one person designated to make appointments and is most likely a woman or young adult.
This position is one of the lowest paid in the practice, so keep that in mind when talking to them and boost their ego at every chance.
? Don't tell them you have to get in this week because you are going on a cruise or exotic trip next week and just have to be seen now. This will not induce sympathy with a person financially incapable of affording such luxury. Just say...
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Self Responsibility Drives Dahn Yoga Member to Healthy Living
(ContentDesk) November 10, 2005 -- With Dahn Yoga, Im convinced Ill live to be 150 and my kids are worried sick.
Thats the humor of Bea Sheridan of Albuquerque, New Mexico whose new passion is yoga.
A registered nurse for 48 years, Bea also holds a doctorate degree in Counseling and Health Education.Having a strong belief in self responsibility and naturopathic medicine, this 68 year old mother of three grown children has never carried health care insurance. Instead, she has always sought natural means of healing.It was at a Deepak Chopra seminar where she spotted a booth for Dahn Yoga. Chopra is widely acknowledged as one of the world's greatest leaders in the field of mind body medicine. The Dahn Yoga booth there offered aura readings -
the electromagnetic field surrounding objects.
Some people refer to this field as a bio-energy field. My aura reading was right on in terms of who I am and it compelled me to look into Dahn Yoga class offerings...
Self Responsibility Drives Dahn Yoga Member to Healthy Living
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New Web Site Assists Car Crash Victims
"I Didn't Realize I Had So Few Friends"Minneapolis, MN, August, 2002 ? When ' wife was injured in a car crash he thought all he had to do was notify his insurance company to get matters resolved. After all, another driver who was charged with DWI hit his wife Johanna and she was taken to the hospital by ambulance. After weeks of frustration, Prins, Marketing Consultant, built an Internet Assistance Program "The Car Crash Victims Alliance Of America." The site provides free information for car crash victims on how to protect themselves against serious financial exposure (http://www.carcrashvictims.citymax.com)."I Didn't Realize I Had So Few Friends"While insurance company claims personnel are usually courteous, Prins had no idea that his wife's case was immediately "compartmentalized". He had to deal with a cast of about a dozen (medical bills from the hospital, his own and other driver's main insurance contact, the police, claims adjusters, property damage, etc.). In the process, he...
New Web Site Assists Car Crash Victims
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The Distributive Justice of the Market - Part II
Philosophers tried to specify a "bundle" or "package" of goods, services, and intangibles (like information, or skills, or knowledge). Justice - though not necessarily happiness - is when everyone possesses an identical bundle. Happiness - though not necessarily justice - is when each one of us possesses a "bundle" which reflects his or her preferences, priorities, and predilections. None of us will be too happy with a standardized bundle, selected by a committee of philosophers - or bureaucrats, as was the case under communism.The market allows for the exchange of goods and services between holders of identical bundles. If I seek books, but detest oranges - I can swap them with someone in return for his books.
That way both of us are rendered better off than under the strict egalitarian version.Still, there is no guarantee that I will find my exact match - a person who is interested in swapping his books for my oranges. Illiquid, small, or imperfect markets thus inhibit the scope...
The Distributive Justice of the Market - Part II
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Ever Wondered What An Auto Insurance Claim Adjuster Does?
An auto insurance claim adjuster works for the insurance company with whom you purchase a policy. Some insurance companies use independent adjusters so that they get an unbiased report. When you have an accident and make a claim on your insurance, the company will send out an adjuster to access the damages and come up with an amount of money that will be needed to complete the repairs. The auto insurance claim adjuster has to contact the garages to get an estimate of what the parts and labor will cost.When you report a claim for an accident to your auto insurance, they will contact the appropriate adjuster. The auto insurance adjuster assigned to your case will contact you to get the details on where he/she can assess the vehicle.
Then you will receive a report from the insurance company regarding the assessment the auto insurance claim adjuster submits. If the damages exceed the value of the vehicle, it will be "written off". The amount you get on your auto insurance policy depends...
Ever Wondered What An Auto Insurance Claim Adjuster Does?
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