Insursnce credit score is a huge factor in premuum

Hello everyone. While I am new to this industry. (I start school next week) I do however have an extensive background in insurance.

I want to point out a mistake that everyone makes when comparing their premiums to the guy about above you. If you have a clean MVR with no losses be it at fault or not, the single greatest factor that decides what your premium will be is your credit. Any time you either get a quote or get a new policy the potential carrier will do what we call it a 'soft hit on your credit. We all it a soft hit because it's kind of like a silent look at your credit. In other words, it does not show up on your credit report. Btw, we call the report an 'insurance score. Most of the time we do not see your actual credit score or what is determining your reported insurance certificate score. If you want to see this first hand you can go to creditkarma.com.it all free and you can get your current credit score, and insurance score.

You can scream bloody murder all you want, but it really is that simple. Look at it this way, you could take a set of twins, put them both in seperate houses and cars made the same exact year with the same specs, and even though everything on the face of it is the same, the premium will always be different. And the same goes for commercial insursnce.

I hope this helps everyone understand why their premium I got be higher or lower than the guy or gal above you....

Stay safe and don't forget to pay your premium!

Btw, if you have any general questions about insursnce I will be more than happy to try and help. I cannot however speak on the behalf of any carriers.

 

Sorry G/MAN, not true at all. I could run a 100 new insurance quotes in a day on myself and my credit would not be affected in anyour way fashion or form. To put it simply, you are not getting a loan, you are getting insurance.

 

If a carrier has incurred a large amount of unfor seen losses in a state they will go the the insurance commissionera office and request a rate increase to recoup their losses. For example in the state I live in a few years ago a certain carrierror incurred a lot of losses in both the auto and home market. They requested a 45% rate increase, and it was approved. What happens next is that the 45% rate increase is spread out over five years or so.

All carriers go through this. I liken it to suddenly having a bucket of customers that's too expensive to carry. Raise the rates, recoup losses, bucket gets too empty you fill it up by dropping the rates.... Rinse and repeat.....

 

Insurance companies believe that people with bad credit history are at a higher risk for claims. Insurance companies operate on numbers, anď its statisticaly proven that the lower the credit score tbe greater risk someone is for a loss. I have seen first hand many times the truth in this. I can't tell you how many times I have done an exterior home inspection on a prospective client that had a less than favorable insurance score and at the same time showed absolutely no pride of ownership in their home.

And a common counter point is that some people have poor credit at no fault of their own. Divorce, stolen identity etc, I agree with this and it sucks.

Don't like the insurance companies checking up on your credit? The the are two options. First would be to self insure, you would have to go to the state for approval. Second would be just don't get insurance......