Credit Scores Versus Insurance

Impact on Your InsuranceCredit history of any consumer is decided by reviewing his insurance credit score. A model of well tested and developed systems may perform this inquiry and gets the information like history of payment of bills, or if you have a bankruptcy, if the agents have any bill collection, or if you have any exceptional debts, and length of credit history you have.

Understanding Credit Scores

The best and accurate price will be achievable by the insurance companies to your policy with the help of your insurance scores. According to independent research and extensive industry, the low insurance scores will have claims which the insurer needs to pay and these are found out by the credit history patterns. Insurance scores and the underwriting factors are used in the same way.

For instance, high scores are because of the low credit card balance below the limit and payments on time. On the other side, you will have the lower scores if you have a credit history which reaches out the limits of your credit and late submitting of payments, your credit score will have a negative impact. The income of a person, gender, race, religion, geographic location, marital status will not be considered for your insurance score. The only thing it evaluate is credit history. Always make sure that all your bills are paid on time and this will help you to manage your credit history. Maintaining a good credit history and to set up a source of credit will always help you in financial planning. It is very simple in maintaining a clean credit history.

Fix Your Credit History

Never drop your coverage. It is necessary to carry minimum coverage as specified by the state law. You have to pay serious penalties if caught and it will only add to your issues. In case you cannot fix your credit score quickly, you must work to deal with it. To raise your credit score effectively there are some methods which will be really beneficial such as: Paying off a debt or disputing errors on your credit document can provide a speedy fix. You ought to look for an auto insurer that weighs other things over credit when determining your rates. You may also qualify for some discounts that will offset the higher premium. You ought to work to fix your credit. Nice credit makes life a lot simpler in our consumer driven society.

Why wood burners change a premium

Impact on Your InsuranceIf you own a home and have a wood burning stove or burn wood in a fireplace, you might be surprised to know that your insurance company may be charging you a higher premium on your homeowners insurance policy. Not every insurance company will charge you higher premiums for a home that burns wood for heat or cooking, so you will have to check with your insurer to see what their policy is.

The logic behind charging you a higher premium because you choose to use wood as a source of heat or for cooking is that it increases the risk of a fire that could damage or destroy your house.

If you do decide to convert to a wood-burning system, you should contact your insurance company and notify them of the change. Depending on the company, they may or may not change your premium.

Many insurance companies will only require you to provide proof that the wood burner was installed properly, received an inspection and was certified as being up to code. They will not automatically raise your rates.

Even if they do raise your rates by $50 or $100 to keep your coverage in the same amount, the money you save by using wood as a fuel source instead of electricity or gas will normally more than offset the bump up in your homeowners insurance premium.

Having a licensed professional contractor install your wood burning unit is the safest way to go. Insurance companies may be suspicious of any do-it-yourself installations and closely scrutinize the installation and safe operation of your new heat source.

 

Lowering Your Premiums with Security

Lowering Your PremiumsIf there’s any approach that’s infinitely effective at lowering your home insurance rates, it’s tickling the fancy of your insurance agent. But before you get the wrong idea, this isn’t a how-to guide on romancing a low home insurance quote out of your insurer. What we’re talking about here are making the kinds of changes to your home that insurance companies go crazy for, and subsequently give discounts for—like upgrading your home security.

What it Entails
Homeowner quotes can be greatly impacted by the installation of a burglar alarm, but just because you don’t have one in your home doesn’t mean that you don’t already have some security measures in place. Remember the following items, each of which can lower your rates, when discussing home insurance quotes with your agent.

  • Reinforced deadbolt locks on all main doors
  • Barred windows (whether intended as decoration or protection)
  • Fireproof safe for the keeping of valuables
  • Outdoor motion detector lights
  • Fire alarms
  • Secure garage doors
  • A watch dog

Before You Buy
Even with all of this, you might be considering the insurance benefits (and personal safety benefits) of having a burglar alarm installed. But prior to sinking half of your savings into it, first go to your insurer and find out what kind of system will lower your rates the most. After all, you don’t want to wind up spending a lot of money on an alarm system that’s not highly rated by your insurer, and results in you receiving a minimal discount.

House Paid Off? You Could Qualify for a Major Home Insurance Discount

Major Home Insurance DiscountBefore you compare home insurance quotes any further, first listen to this news flash. Did you know that many home insurance companies offer discounts to customers that aren’t carrying a mortgage? What this means is that if you’ve recently paid off your house and are still paying the same amount of money for your home insurance premiums, you might be paying far too much.

The main reason homeowners who have their houses paid off get home insurance at cheaper rates is because they’re seen as less of a risk when it comes to insurance claims than, say, someone who is upside down in debt.

This nugget of information probably comes as a big surprise to those who haven’t carried a mortgage in years but have been paying the same rates as everyone else. It might even be cause for a bit of justified anger. But is it really the insurance company’s fault? Think about it. Unless you inform your home insurer that you’ve paid off your house, they have no way of knowing.

If anything, this scenario serves as a perfect example of why it’s important to review your home insurance coverage every year, and to take into consideration what are called “major life events”—and if paying off your mortgage isn’t a major life event, then what is?

Even if you’re fully satisfied with your current home insurer, it’s smart to compare home insurance quotes on a regular basis. You don’t have to make this a weekly hobby, but doing so once a year—maybe a month ahead of paying your yearly premiums, for example—is a smart idea.

Rising to the Challenge of Home Ownership

Challenge of HomeownershipBuying a home is a major investment and one of the most exciting things you’ll ever do, but it can also sometimes be a serious drag. As you enter into your home buying experience, you might find yourself overwhelmed at the amount of paperwork and details that are involved—not only from your lender, but from your home insurer as well. All of that is really nothing, however, when compared to the responsibilities that you’ll have to shoulder in your quest to be a responsible homeowner. The first thing to know: home insurance companies and lenders don’t always communicate well with one another. It’s up to you to ensure communication takes place.

In order to do that, you’ll have to take charge of knowing exactly who’s handling what. It’s easy enough for a homeowner to get confused about who’s responsible for paying for home insurance premiums, and when they need to be paid. A lot of times, your home insurance premiums are paid for by your lender—but there are circumstances under which you’ll be responsible for making individual payments to both. If you are uncertain about either one, contact your insurer and your lender to get immediate clarification.

If you’re struggling with it all, take heart. Between mortgage payments and homeowner policies, there’s plenty of room for confusion. But this is no time or place to play dumb and hope things get ironed out on their own. When dealing with home insurance companies and financial lending institutions, it’s critical to stay on top of everything.

The Accuracy of Online Car Insurance Quotes

Complete honesty and transparencyIf you’re old enough to remember the days before the internet, where comparing auto insurance rates would often require an in-person visit to an insurer, you might have good reason to question the validity of websites that offer free quotes—as well as the accuracy of the quotes themselves.

As it turns out, more often than not it’s “user error” that leads to inaccuracies in free online insurance quotes. Remember, auto insurance websites and online comparison tools don’t just ask you what kind of car you drive and whether or not you consider yourself a good driver—there’s a lot more that goes into the bottom price determination. And if you’re unprepared in any way, you shouldn’t be surprised if there’s a big price difference when it comes time to sign your policy.

Your driving record plays a big part in the quotes you’ll get when comparing auto insurance online. If you conveniently forget to mention a major infraction, the quote amount will change drastically once the insurance company investigates your driving record. Your credit score also plays heavily into the kind of rate you’ll get, so knowing where you stand with the credit bureaus is also key to getting an accurate online quote.

The bottom line: if you’re going to shop for insurance online and you want a firm quote, be prepared for complete honesty and transparency.

Cancelling Your Monthly Car Insurance

Think !!!An auto insurance policy isn’t like a cell phone plan. Just because you’re on a monthly car insurance payment schedule that automatically renews itself doesn’t mean that you have to wait to switch providers. You can walk away at any time. But if you fail to first notify your insurer, you could cause a few unwanted complications.

Give Notice
You can let your auto insurance policy cancel on its own simply by not making your scheduled monthly car insurance payments, but doing so has a couple of risks involved. First of all, you could get hit with a cancelation penalty if you cancel in the middle of your term without giving proper notice. Second, if you don’t already have coverage lined up through another provider, letting your insurance lapse could be costly. If you’re caught driving without it, you could face some serious legal consequences. And finding a new insurer after you’ve been caught driving without insurance will be much more difficult because you’ll be a high risk client.

The Best Way to Walk Away
Always submit your notice of cancelation in writing, and far enough in advance to cover you in the event of any clerical snafus. Regardless of whether or not your decision to switch insurance companies was based on having found a better price elsewhere, or being extremely dissatisfied with the service you’ve received, don’t shoot yourself in the foot by failing to give advance notice. Although the best time to cancel your insurance policy is immediately before it renews, you can always get a pro-rated adjustment that pays you back for coverage you won’t be using.

Debunking the Red Car Myth

Ward Off the MythTalk is cheap, and nowhere is this more evident than when it comes to the myths surrounding car insurance. For example, many people will offer you these purportedly sage words of car insurance advice: don’t buy a red car, they’re more expensive to insure. This is also completely untrue. Car color has nothing to do with your car insurance premiums, and we’ll prove it to you. These are the facts.

  • Your car insurer wants to know only five things about your vehicle: make, model, year, body type, and engine size. If you’ve ever been asked what color your car is by an auto insurance rep, it’s only because they were personally curious.
  • Drivers of red cars do pay higher insurance premiums, but it has nothing to do with car color. Instead, it’s a result of the driver’s bad habits behind the wheel. Facts are facts: red cars are more frequently involved in car accidents, but that’s because red is the most frequently picked color by aggressive drivers. This doesn’t mean that you’re hell on wheels if you happen to own a red vehicle. To the contrary, there are plenty of responsible drivers who love red. But when it comes down to statistics, red just so happens to be the color of choice among drivers who could use an extra week or two in a driver’s safety training class.
  • Your car’s make and model is what determines your car insurance premiums. For example, sports cars are far more expensive to insure than sedans because they can drive a whole lot faster and cause a whole lot more damage.

 

Tips on Finding the Right Car Insurance Company

Check for the TipsAuto insurance providers aren’t what you’d call “a dime a dozen” but there are an awful lot of them out there. If you’re the type of person who’d much rather deal with a dedicated car insurance agent you can actually look in the face than the next available representative, you might need to shop around. Here’s a short checklist that offers tips on picking the car insurance company that’s right for you.

  • Ask around. Even today, where just about all the information you could ever use is available online, word of mouth still reigns supreme to connect with quality auto insurance providers. If you’ve talked to your family and friends and still want a professional opinion, contact a local auto body shop and ask their opinion. They work with car insurance companies all the time and should be able to give you an insider’s perspective.
  • Find an independent agent. Not every car insurance agent works for a specific insurer – some act as brokers by pairing up prospective customers with insurance companies. An independent agent will be in a far better position to pair you up with the insurance company that’s right for you, rather than someone who’s employed by the car insurer whose job it is to convince you to do business with them.
  • Don’t be afraid to break a few hearts. The fact is, insurance companies are in the business of competing for your business. To that end, you should never sign a contract with any insurance agent unless you’re completely satisfied with the coverage and the rate you’ll be paying. You have the right to walk away at any time during discussions, even if it pains the agent sitting on the other side of the desk. Not being afraid to part ways amicably is part of finding the insurance company that’s right for you.