auto insurance premium after accident
When buying auto insurance, why do they do a credit check?
Why does your credit effect your insurance premium. My insurance company withdraws my premium directly out of my checking account, and if I do not pay my insurance, they would simply cancel my policy, so what role does credit have in this situation. I must of had a “ding” or two on my credit, because after I was quoted, my premium went up a few bucks a month after they ran my credit. I have never caused and accident, nor had ANY moving violations……been driving 17 years….what gives? Is this just a way to get more money out of us? Being late on a couple bills over the years does not make you a reckless driver!
It’s like prior speeding tickets – insurance companies have found a direct corrolation between credit score, and claims paid out.
There haven’t been any studies, to the best of my knowledge, WHY people with lower scores have more claims filed, and more paid out on claims – so anyone who says “it’s because you don’t maintain your car” or “its because you driver carelessly” is talking out of their hat (or, SHOW ME THE STUDY!!!).
But I have seen the charts with my own eyes!! That show, people with a credit score of 705, on average, have $1 paid out in claims for every $1 paid in premiums; and people with a 550 have $2.50 paid out for every $1 paid in premiums.
Insurance departments in just about every state allow credit score to be used as a rating factor, because the mathematical relationship is THERE, and is PROVEN.
Sorry, they really don’t care about why.
Now, what you need to do, is get a copy of your credit report and clean it up!! MOST of the time, closing out all the unused, newer accounts can seriously increase your score – as it’s not just about paying bills on time, but how many times you’ve applied for credit in the past six months, how many accounts you have open, balance due on accounts, available credit (lower those credit lines!!), and the average length each account has been open.
Yep, people who move from one credit card company to the other every year, getting the lowest interest rate, and always paying on time, have a WORSE credit score than someone with a couple late payments, that’s had the account for 10 years.
Hope that helps.
Vin Diesel calls an Auto Insurance Agency
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Accident $6.99 Accident |
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Fire Insurance After Shave Balm NK2201004 $35.11 Fire Insurance After Shave Balm NK2201004 by Nickel for Men – 2.6 oz After Shave Balm |
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Fire Insurance After Shave Balm (2.6 fl oz.) $32 Fire Insurance calms razor burn and other shaving-related irritation with allantoin while preparing the skin for the day. The soothing, lotion-like texture immediately comforts the skin, leaving it feeling smooth and refreshed. Designed especially for the skin of a man. |
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…If Accident Will $15.98 Description not provided. |
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Accident And Insurgency $10.49 Accident And Insurgency |
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Farm Accident $10.49 Farm Accident |
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Accident Of Birth $5.49 Accident Of Birth |
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Mister Accident $4.99 Mister Accident |
