HOMEOWNERS INSURANCE |
AUTO INSURANCE |
HEALTH INSURANCE |
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What is an Insurance Score
If you have ever applied for a car loan, a mortgage or a credit card,
you know that the way you have managed your credit in the past in very important.
The information contained in your credit report can have a major influence over
many parts of your life, including your auto and homeowners insurance.
The way you handle your credit says a lot about how responsible you are.
Many insurance companies use a credit-based “insurance score” when evaluating
insurance applications or policies. Insurance scores predict how often you are likely
to file claims, and/or how expensive those claims will be.
When an insurance application is made, an insurance company will order your credit
information. This information is entered into a computer program that generates
an insurance score. Most of these programs look at things like payment history,
collections, bankruptcies and outstanding debt and length of credit history.
For example, regular, on-time credit card and house payments affect a score
positively, while late payments affect a score negatively.
Credit-based insurance scores can help you qualify for lower premiums, because insurance
companies charge lower premiums to customers who are considered more responsible.
The use of credit-based insurance scores has allowed more companies to offer more products
to more people. Since insurance scores have been used, competition in the auto
insurance market has increased significantly- and competition quite leads often
to more choices and lower costs.
Insurance scores can be improved. By using credit wisely- paying bills on time
and exercising responsibility in other financial activities- you can usually
qualify for lower rates.
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This material is for informational purposes only.
All statements herein are subject to provisions, exclusions and conditions
of the applicable policy. For an actual description of all coverage, terms
and conditions, refer to the insurance policy. Coverages are subject to
individual insureds meeting our underwriting qualifications and to
availability.
(434) 455-4777
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