Home    |    About Us    |    Contact Us    |   Privacy Policy  

 
 

 
Below, you'll find extensive information on leading auto insurance quote articles and products to help you on your way to success.

Watch Out - Credit Score Determining Auto Insurance Cost
By M Wakefield
You hit another car; your auto insurer probably raises your premiums. But you may not know that your premiums can shoot up much higher if your car insurance company is using a new breed of credit score, even if you have a pristine driving record.


Known as credit-based insurance scores, these numbers are computed from your bill-paying and loan data collected by the major credit bureaus. In recent years, the scores have become as important in determining your annual premium as your driving record and the neighborhood where you live.

Hundreds of insurers are using models created by ChoicePoint and Fair Isaac, the Minneapolis company that invented credit scoring. Others have developed their own systems. The scoring models stress bits of credit data that would seem to have little to do with a driver's tendency to make claims. There are no standards: Each company uses different models and weighs different credit-report information. Some big companies find scoring useful only for new customers, not renewals, while others may use it for both.

Auto insurers use this credit information to produce an "insurance score" because they believe it allows them to more accurately assess and price a risk. In conjunction with other information such as years of driving experience, previous accidents, the type of car or home, and where the driver lives and drives, credit-based insurance scores allow insurers to differentiate between lower and higher insurance risks.

These scores are not a measure of someone's financial assets, but of how you as an individual manage your financial affairs. Insurance scores are supposed to be highly accurate predictors of future loss in auto insurance.

The statistical correlation between good credit and relatively low insurance losses presupposes that the responsibility required to prudently manage one's finances is associated with other types of responsible and prudent behaviors, such as proper maintenance of homes and autos, and safe operation of cars.

Many recent studies confirm the strong correlation between credit history and loss in both auto and homeowners insurance. Neither insurers nor the credit-scoring companies that discovered the relationship know what causes it. It is believed that generally people with a pattern of irresponsible financial behavior and poor credit history have a much greater chance of being in an accident or filing a claim. But the other studies, such as the Monaghan study, which reviewed those long-standing inferences, say that links between responsible financial management and future expected losses are "unsupported."

Either way scoring could cost you hundreds of extra dollars. Even a driver with a fantastic credit score, who rates a low-interest mortgage, could wind up with a less favorable insurance score and thus a high premium. That's because formulations for insurance scores weigh credit data differently from traditional lender scores.

There is a way to check. Under the Fair Credit Reporting Act of 1970, insurers are required to notify consumers if they experience adverse action, such as denial, premium increase or cancellation of coverage, due to information contained in their credit report. Consumers also have the right to have errors in their credit report corrected and can request that the insurance company recalculate their insurance score and reevaluate their insurance coverage and premium.
Receive a free online auto insurance quote that will save you money by visiting www.your-car-insurance.biz, a reliable auto insurance website that provides information and resources to include information on www.your-car-insurance.biz/Car_Insurance_Optional_and_Special_Coverage.html"> optional coverage.


We strive to provide only quality articles, so if there is a specific topic related to insurance auto that you would like us to cover, please contact us at any time.

And again, thank you to those contributing daily to our auto insurance quote resources.

Farmers Insurance Review: Outrageous Famers...bum dum bum bum bum bum
Reviewed by Josh from Bellevue Ohio on November 7, 2013. Recommend: No.
Esurance Review: Accused me of commiting fraud
Reviewed by Dee from Gainesville, FL on July 31, 2013. Recommend: No.
Selective Insurance Review: NEVER USE THIS COMPANY !!!!!!!!!!
Reviewed by Dan from Erie Pa. on February 8, 2013. Recommend: No.
Progressive Review: Crooks!
Reviewed by arizrain from Phoenix on July 10, 2012. Recommend: No.
AAA Review: Michigan - Injury accident NOT YOUR FAULT/TOO BAD!
Reviewed by Jardin La Fleur from Northville Michigan USA on April 23, 2012. Recommend: No.
Progressive Review: Getting screwed
Reviewed by rarack22 from Southern Ohio on January 18, 2012. Recommend: No.
Progressive Review: Just a big LIE
Reviewed by Debbie from Orlando, Fl on January 2, 2012. Recommend: No.
AAA Review: AAA Sucks
Reviewed by JIMMARMI from Davison, Mi on December 29, 2011. Recommend: No.
Progressive Review: The worst...
Reviewed by G from WA on December 23, 2011. Recommend: No.
Progressive Review: rip off and fraud if you have progressive
Reviewed by LINDA from COLORADO on December 16, 2011. Recommend: No.
Westfield Insurance Review: No loyalty to a 22 year policy holder
Reviewed by BRUCE from NORRISTOWN PA on December 13, 2011. Recommend: No.
Progressive Review: Cancellation fee - almost no service
Reviewed by Olgie from CA LA on November 5, 2011. Recommend: No.
Progressive Review: Stay away -- they are PROGRESSIVE
Reviewed by Stranger from Miami on October 24, 2011. Recommend: No.
Westfield Insurance Review: Sarcastic Adjuster
Reviewed by JC from Medina, Ohio on October 12, 2011. Recommend: No.
USAA Review: USAA Slow Misrepresentative
Reviewed by skyewalker99 from Daytona Beach Florida on October 4, 2011. Recommend: No.

Auto Insurance Review - Where To Look For An Unbiased Auto Insurance Review
By David Ackland
Q: My car insurance policy is set to expire next month and I will be looking for a better deal on my next policy. Is there a source out there that will give me an unbiased auto insurance review for Read more...

Are The Cheapest Auto Insurance Quotes Inevitably The Greatest?
By Franchis
You become conscious that insurance companies think about teenagers to be risky drivers since teenagers are fresh to driving, frequently careless, and as well experience they are indomitable from Read more...
Resources
Auto Insurance Companies
Auto Insurance Cost
Auto Insurance Online
Auto Insurance Quote
More Resources
Steps To Be Followed While Selecting An Auto Insurance Company
By Franchis
Fee of automobile insurance is raising everyday that is escalating the number of citizens searching for economical auto insurance quotes. But it is really difficult to find a cheap auto insurance Read more...
How To Deal With Auto Insurance Quotes
By Maksym200 Holovchenko200
Auto insurance Car insurance ... not the two most exciting words ever! It can be more of a chore than a pleasure to find the best auto insurance quotes. And with such a huge Read more...
Auto Insurance Related Fact
By deepak kulkarni
If you are looking for information about Auto Insurance, you will find the below related article very helpful. It provides a refreshing perspective that is much related to Auto Insurance and in some Read more...
Cheap Auto Insurance Online For Your Teen
By Bill Weaver -
So, you have a teen that is at the driving age. Choosing the right auto, the right insurance and the factors that determine price, is the purpose of this article.Choosing the Read more...
Things To Consider Before Buying An Auto Insurance Policy
By insure247
There are certain things that needs to be taken into consideration before you consider getting the right auto insurance coverage for your car. Firstly you will need to get auto car insurance Read more...

 

 

© 2019 Petua series on Auto Insurance . All Rights Reserved | Best Tips, Guidelines and Information from Petua.org