Monday, June 22nd, 2009 at
7:17 pm
Libra : If I am shopping for an auto insurance quote that will NOT effect my credit (score) in any way, right?
Compare auto insurance and credit insurance.
Response :When you compare auto insurance quote or review car insurance remember that credit rating is important for auto insurance. You can opt and get all the auto insurance discounts but still not get a low auto insurance rate. Remember that it is a wrong myth that if you compare auto insurance quotes your credit score is affected.
Libra, you are right with the fact that insurance companies do look at the credit score before they underwrite and rate an auto insurance policy. Some insurance companies refuse you insurance if your credit score is not good. On the other hand if your credit is good than your car insurance premium can also reduce by 50%.
Now coming to the point of whether your credit score is affected in any way than let me reassure you that this is not the case. If you are applying for a line of credit or a credit card or a loan and a credit enquiry is done for the same, your credit score will certainly be affected which is a hard hit. The hit which is made by the insurance company is considered a soft hit, which will not affect your credit rating.
The bottom line is this; your credit scores can affect your insurance rates. It is true in most states that the better your credit score, the lower your auto insurance premiums will be. You can compare for free, quickly and conveniently without any obligations the multiple quotes offered online and narrow down your search to the cheapest quote. Once you have the two cheapest quotes you can make enquires about the coverage and the insurance company before you decide with whom to insure.
Thanks.
Kamlesh
Friday, June 19th, 2009 at
9:27 pm
Reader: What does my credit rating have to do with my auto insurance quote or rating?
Low auto insurance rates can be obtained with good credit.
Auto insurance quote credit rating
Response : One thing you need to remember when you review car insurance or compare auto insurance quote to get low auto insurance rate is that your credit score should be good. Normally one would think that there should be no relation between the car insurance rate and a credit score.
The credit score is generated from a person credit history. Credit history is the score of the time-line and the default in paying your bills like the telephone bills, loans or any outstanding bills. The insurance premium for any risk including the auto insurance is based on the probability of loss; the higher the probability of loss, the higher the risk and the higher the rating.
The actuarial department of the insurance company has analyzed the “insurance score” and based the auto insurance premium on this. The “insurance score” is generated from a numerical rating of the person credit history. Based on the “insurance score” the underwriting of the auto insurance is done. The insurance companies have found that if the credit score of a person is low than the risk is higher. Statistically it has been found that a person with a low score for credit history is more likely to place a claim or meet with an accident than one with a higher score. This may be the case since a person with poor credit has financial problems and is under stress.
So the next time you reveiw car insurance coverage or compare auto insurance quote, whether online or through an agent, please check your credit score. If it is good – you have a ticket to low auto insurance rates. The agent is not giving you low auto insurance rates – you are entitled to low auto insurance rates.
Thursday, June 18th, 2009 at
7:42 pm
Reader : What are the best liability policy limits? How do I reveiw car insurance coverage to get best auto insurance limits?
Review car insurance coverage for auto insurance limits. Frank New York
This is a very interesting question. When you want to know whether you have the optimum auto insurance limits, you will have to review car insurance coverage and compare auto insurance quotes. These are the two biggest tools that will help you save $, your hard earned money. There are certain liability limits which mandatory limits are fixed by the state. The minimum limits of New York limits are sometimes together referred to as “$25,000/$50,000/$10,000” or “25/50/10 “. Most of the insurance agents would advise that the minimum policy limits for car insurance liability are not sufficient. The normal rule of the thumb adapted by the agents and insurance professionals for the average driver is 100/300/100. This means that:
- 100,000 per person for bodily injury
- 300,000 per accident for bodily injury
- 100,000 per accident for property damage
When deciding on the limits since the medical treatment cost is fairly same, the last limit of property damage would be best for a person who is not an average driver. Property damage is damage t the other car or landscape. This portion of liability would vary from place to place and depending upon the property damaged.
It is interesting to note that the courts sometimes award very high amounts of liability costs. Please consider carefully your own and your families driving skills and financial stability before deciding on the auto insurance. Review car insurance coverage and compare auto insurance quotes and save money.
Good question. Thanks.
Best wishes.
Kamlesh
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Wednesday, June 17th, 2009 at
6:11 pm
Eben Pagan : How is the auto insurance rate determined? Will knowing this help in getting low auto insurance rate or low auto insurance rates?
Low auto insurance rates – easy way is review car insurance
Response : Eben,an easy way to get a low auto insurance rate is to reveiw car insurance coverage and compare auto insurance quote online. Yest you will need to understand how the rates are determined. The reason is we think logically, hence if we know the reasoning behind we can work accordingly.
It would be interesting to know exactly on what basis the rates are decided by the insurance companies so that you will learn why the auto insurance quotes differ from state to state or from company to company.
The insurers basically take into consideration their expenses for paying claims and operating the business, plus some amount of profit for shareholder. Secondly they want to charge higher rates to the persons who have had claims to balance the risk. Lastly the insurers want to take into consideration the competition existing in the market.
Besides this is most important for car insurance is that they have the governing rates or limits imposed by the state authorities. Here is the link to the web-site where one can know more about the State Government Regulations.
Generally the insurance companies divide the risk as per the expected exposure of the risk in three categories a) Low risk (preferred) b) Medium risk (standard) and c) High risk ( Non-standard). The classification into categories is done based on the type of car, the purpose of use of the auto, the driver who is driving the auto, geographical region and other considerations.
It is this classification that might vary from insurance company to company based on the underwriting philosophy, claim experiences and business portfolio. This is why a prudent person needs to compare auto insurance quote.
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Tuesday, June 16th, 2009 at
5:35 pm
Jeff Obama : How can I chosse the right insurance company and get the low auto insurance quotes?
Response : The question which is utmost in the mind of all persons for low auto insurance quote is the choice of the insurance company, rather than low car insurance rate.
I would like to show you the ways of finding out the right insurance company. Your state insurance department might also provide comparisons of prices charged by different insurers. (State insurance department phone numbers and Web sites can be found here.)
A smart persons would also like to Check the financial health of insurance companies with rating companies such as A.M. Best (http://www.ambest.com) and Standard & Poor’s (http://www.standardandpoors.com/) and consult consumer magazines, at all times especially in the recession.
However here are a few points which I would like to bring to your mind before you decide on the chicken or the egg (the insurance company or the car insurance quote).
- The greatest comfort about auto insurance and general insurance companies is that the policy is normally issued only for a span of one year and so it is not going to be a matter of your pension funds or your life savings going down the drain if the company goes bankrupt.
- Insurance companies in all states are highly regulated and hence, even if the company is sold out to another insurer the clientele is transferred to the new insurer.
- It is mandatory for insurance companies to maintain a reserve ratio.
Based on the above facts, I strongly feel that it is necessary to find a stable company, but it is more important to find a compnay who renders good customer services. You can ask your friends and relatives to refer you to one because of their good customer service. Some insurance companies do direct marketing and some sell through an agent. The agent should be one who is ready to talk to you and answer your questions.
However, I think you are more smart if you get the correct pricing for your insurance – low and cheap premiums would be the key that I would suggest since you are paying less for the same risk. Get different quotes and compare them. It’s best to shop around and find out what is available and the options available. The prices vary from company to company. The right quote for you is the key to your savings, if you get this you will naturally have got a low auto insurance rate!
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