- Your credit history. Every insurance agent will check for your credit score, its history and also your rapport with previous insurance companies. If you fail to have a good credit history or multiple car crashes, it simply means high premium.
- If you are on a high risk, insurance companies will have to take those risk factors into consideration as they will be paying to replace the loss from risks. Hence, you will end up paying more premiums as you will need the services to be rendered by the insurance company sooner to cover those losses.
- Basic home insurance policy will cover your home and its content for their replacement cost value. This makes the agent to delve deep and query in order to know the materials used in construction, age of appliances used, square footage, architecture of the building, updates on electrical, heating and plumbing systems, any detached structures, quality of flooring and roofing materials and many more.
- If you try saving your money now and tend to hide the age of heating or plumbing systems, then think twice. When any loss occurs, your insurance company will pay you only for the replacement cost value of the asset as per the details given by you. Hence, being truthful and accurate becomes necessary.
- Your prized possessions. Valuables such as jewelery, furs, silver, electronic equipments, some antiques and many more needs a separate policy. These valuables usually need a clause in the policy. It is always better to check with your home insurance company or the agent. Also, remember to cover these valuables for their replacement cost value and do not hide the correct value from the insurer.
You will be responsible for other’s loss if they are involved in an automobile accident along with you. A lawsuit or a car insurance claim can be filed for the loss that has occurred. To judge about the insured’s premium, consumer credit information will be used by the car insurance companies. Many researches have shown statistical relationship between the loss that has happened to the consumer and the credit score information. Each car insurance company will utilize the credit scores so that they can decide what scoring model they will be using. Following requirements can be included in the model :
Credit Score Rule : Common factors that are used by the insurers are :
- Foreclosures, liens, collections, Bankruptcy.
- Payment history : This will give information how many times you have done late payments and also calculate number of days between the due date and the payment date.
- Length of the credit History : Amount of time consumers have been in credit system.
- Home Ownership : A consumer rents or owns a property.
- Inquiries for credit : How many times the consumer has applied for new accounts including utility accounts, credit card accounts and loans.
- Number of open credit lines : How many department credit cards and major credit cards are open.
- Types of Credit in Use : Finance company loans, store credit cards and major credit cards.
- Outstanding Debt : How much credit does a consumer owe.
How To improve Credit Score
You should keep reviewing your credit report because there might be inaccurate information. Plan yourself to improve your credit score. You can improve your credit history if you follow the below suggestions :
- Pay your bills on time every month.
- Pay the due amount at least on time.
- Keep the creditor in contact if you cannot make the payment.
- When it comes to credit card reduce the amount you are owed to.
- Reduce the new credit accounts.
The basic requirement which is needed by every driver is car insurance. This car insurance is required to safeguard you in unforeseen circumstances. All states in US expect that you have atleast basic car insurance that comply to the standards set by the states. Each state will have different requirements for car insurance. Some states expect you to show the documents which determine your financial capacity to handle the accidents. If you own a car, then it is strongly recommended that you should have car insurance but the premium you may have to pay will vary for each person. Premium vary due to many factors.
Before you sign on the dotted line and opt for a car insurance policy, you need to know the benefit of credit score. This is purely based on your credit history. There are many purposes behind maintaining a good score. While securing loan, finding a house, getting telephone connection, buying insurance, your credit history and hence the credit score comes in to picture. There will be a numerical ranking given by insurance companies based on individual’s credit history and is called “insurance score”. This will be considered during underwriting and finalizing your insurance rates. This all depends on how you will maintain your financial affairs. In fact it also helps you in claiming process making it smooth and quick. A good credit history will definitely fetch you those discounts on your car insurance policy.
All you have to do is just pay your credit bills on time and be in good terms with the banks giving your credit cards. Try paying the bill in full rather than in installments and keep a record of how your credit history is and do the needful to void if any errors.