2013년 10월 27일 일요일

Chantelle Dalby's blog ::...Greg and got the stupid car seat and he prescribed...to the doctor Monday. I have insurance adjusters coming tomorrow from my insurance co, I have to get an x...






Chantelle Dalby's blog ::...Greg and got the stupid car seat and he prescribed...to the doctor Monday. I have insurance adjusters coming tomorrow from my insurance co, I have to get an x...










There               are               many               reasons               we               want               to               maintain               a               good               credit               rating,               and               now               one               of               the               most               important               is               our               ability               to               get               reasonably               priced               car               insurance.

There               is               a               general               theory               in               the               insurance               industry               which               purports               that               people               with               higher               credit               scores               represent               a               much               lower               risk               in               terms               of               ever               making               a               claim.

This               means               you               pay               lower               premiums               when               you               keep               your               credit               scores               high.

Consumer               advocates,               along               with               insurance               regulators               and               state               legislators,               do               not               all               agree               with               this               program,               since               there               is               no               way               to               prevent               abuse               in               the               form               of               discrimination.
               Shopping               for               new               insurance?

Better               do               this               when               you               have               your               credit               rating               under               control.

If               there               are               some               marks               against               you,               then               staying               with               your               current               insurer               is               a               wise               move.

According               to               the               Insurance               Information               Institute,               over               90%               of               insurers               look               at               credit               ratings               before               writing               a               new               policy,               but               less               than               15%               look               at               this               on               a               renewal.
               Insurance               companies               do               not               look               at               your               credit               rating               directly.

There               is               actually               a               credit               score               and               an               insurance               score,               with               the               insurance               score               being               more               concerned               with               your               ability               to               manage               credit.

There               are               basically               three               numbers               they               might               use:               first               is               the               three-digit               score               which               comes               from               the               Fair               Isaacs               &               Co.,               or               they               order               your               FICO               insurance               score,               or               they               use               these               inputs               to               generate               their               own               scoring               system.
               No               matter               how               it               is               formulated               they               will               give               you               better               rates               when               you               have               a               higher               credit               rating.

Insurance               companies               use               a               credit               rating               system               based               on               your               credit               history               in               order               to               determine               your               risk               level               before               underwriting               a               policy.

According               to               the               Insurance               Information               Institute,               if               you               have               a               low               credit               score               the               experts               feel               that               you               are               more               likely               to               file               a               claim.

This               rating               system               applies               for               car               insurance               as               well               as               homeowners.
               Studies               show               that               those               who               manage               their               credit               history               poorly               run               a               higher               risk               of               filing               a               claim.

To               offset               that               risk               the               insurer               will               charge               you               a               higher               premium               to               cover               their               losses.

This               is               logical               in               terms               of               the               insurer               limiting               their               exposure,               but               the               homeowner               suffers               even               if               they               work               to               improve               their               credit               rating.

We               find               limited               options,               and               as               a               result               tend               to               go               with               the               first               insurer               that               will               take               us.
               One               of               the               items               that               can               cost               you               a               great               deal               more               in               the               event               you               have               poor               credit               is               when               you               go               to               get               insurance               for               your               car.

Personally               I               am               not               exactly               clear               on               how               my               credit               history               is               related               to               my               need               to               submit               a               claim,               but               the               insurance               industry               is               convinced               that               low               credit               means               higher               risk               in               terms               of               filing               claims.
               I               learned               about               this               recently               when               I               changed               insurance               companies               due               to               a               car               accident               claim               I               made.

The               new               company               scrutinized               my               credit               history               much               more               diligently               than               the               old               company               did               20               years               ago               when               I               first               signed               with               them.

Needless               to               say,               it               was               a               shock               to               find               out               that               the               insurer               was               so               interested               in               my               credit               rating.
               The               downside               to               this               is               that               you               have               no               control               over               the               information               that               is               gathered               and               sent               to               your               insurance               agency,               so               if               they               find               negative               items               on               your               record,               it               could               affect               how               much               you               will               pay               for               car               insurance.

It               is               your               job               to               make               sure               the               credit               report               is               accurate.

It               is               too               late               once               you               start               paying               the               premiums.
               In               my               experience,               most               insurance               companies               rarely               roll               back               premiums               when               your               credit               rating               improves,               and               they               tend               to               wait               to               see               over               a               much               longer               period               of               time               that               you               will               maintain               the               improved               scores.

So               even               a               significant               correction               in               credit               rating               may               not               impact               your               insurance               rates               for               quite               some               time.
               The               smartest               thing               you               can               do               is               to               stay               on               top               of               your               credit               rating               and               stay               on               top               of               your               insurance               costs.

What               I               have               found               works               well               is               to               visit               two               or               three               local               insurance               agencies               looking               for               ones               that               can               offer               discounts               by               combining               homeowner's               and               auto               insurance.

The               more               you               can               put               under               one               umbrella,               the               more               money               they               can               save               you               per               month               .
               There               is               probably               a               chart               somewhere               which               shows               how               much               more               you               will               pay               with               a               credit               rating               of               550               versus               650,               but               the               insurance               companies               do               not               have               to               publish               that               data.

When               pressed               to               disclose               any               useful               information               regarding               this               formula,               most               insurance               agents               tend               to               shy               away.

If               you               are               canceled               or               denied               then               they               have               to               send               you               a               reason,               according               to               the               Federal               Trade               Commission.
               So               if               you               want               low               insurance               rates               while               maintaining               good               coverage,               keep               your               credit               history               in               good               standing.
               Sources:
               Federal               Trade               Commission               -               www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm.
               Insurance               Information               Institute               -               www.iii.org/press_room/.







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