Why does your Fica win dictate an insurance premium rate, why not your driving transcript?
are the insurance companies worried they wont get paid,,,,??
Answers:
Your credit rating doesn't completely dictate your insurance premiums, but it can affect them if you have poor credit. Just like have excellent credit doesn't guarantee you low premiums if you have a bad driving text.
The insurance company takes all kind of these things into consideration, not just one thing alone.
Don't forget, the insurance company is simply a business trying to make money themselves.
If you do have discouraging credit, consider the other things you can do to lower your rate so that you have a better chance of getting cheap saloon insurance. There's a list of things at the link below. Source(s): http://www.auto-insurance-helper.com/che…
It's FICO, an acronym for Fair Isaac COrporation. FICA is the federal payroll presumption for medicare. Somebody determined that people with low credit score TEND to have a higher frequency of insurance claims. It's simply another way of measuring responsibility. Personally, I don't agree next to it, but what are you going to do?
No, but unhappily studies and statistics show that individuals who have lower credit scores are much more promising to defraud their insurance company on a loss of the vehicle with a underlying idea that the company will payment off a vehicle that they cannot afford. Sad, but true to a degree.
How it works is this:
Your driving account still determines your premium. Your age, claim history, where you live, car you drive & coverages you want also do.
But, your "insurance score" also is a factor surrounded by your premium.
Insurance score is different than your credit score. They look at other factor within your score that the credit reporting bureaus don't look at. They look at the type of credit you enjoy (one company I know gives a better credit score to ethnic group with a mobile speedpass - go figure). There are several "insurance models" out in that that companies pick. They look at them & pick the one they feel best suits them. So, your credit score is solitary a piece of the insurance score. I know people beside pristine credit scores who didn't get a impeccable insurance score (many companies use letters A-L, I enjoy one company that uses 1-44). Also, your insurance score will vary company to company & will also ebb and flow between lines of business (auto or home). It depends on the exact factors they look at. I know people next to shorter credit histories (which would lower their credit score)that got perfect insurance score. You really don't know for sure what the factors are - I don't & I am in the business.
Statistics own shown that people with lower insurance score have more claims paid (either one claim i.e. higher or several claims). There have be study after study on this. Progressive has done this for about 10 yrs presently.
Related Questions:
Answers:
Your credit rating doesn't completely dictate your insurance premiums, but it can affect them if you have poor credit. Just like have excellent credit doesn't guarantee you low premiums if you have a bad driving text.
The insurance company takes all kind of these things into consideration, not just one thing alone.
Don't forget, the insurance company is simply a business trying to make money themselves.
If you do have discouraging credit, consider the other things you can do to lower your rate so that you have a better chance of getting cheap saloon insurance. There's a list of things at the link below. Source(s): http://www.auto-insurance-helper.com/che…
It's FICO, an acronym for Fair Isaac COrporation. FICA is the federal payroll presumption for medicare. Somebody determined that people with low credit score TEND to have a higher frequency of insurance claims. It's simply another way of measuring responsibility. Personally, I don't agree next to it, but what are you going to do?
No, but unhappily studies and statistics show that individuals who have lower credit scores are much more promising to defraud their insurance company on a loss of the vehicle with a underlying idea that the company will payment off a vehicle that they cannot afford. Sad, but true to a degree.
How it works is this:
Your driving account still determines your premium. Your age, claim history, where you live, car you drive & coverages you want also do.
But, your "insurance score" also is a factor surrounded by your premium.
Insurance score is different than your credit score. They look at other factor within your score that the credit reporting bureaus don't look at. They look at the type of credit you enjoy (one company I know gives a better credit score to ethnic group with a mobile speedpass - go figure). There are several "insurance models" out in that that companies pick. They look at them & pick the one they feel best suits them. So, your credit score is solitary a piece of the insurance score. I know people beside pristine credit scores who didn't get a impeccable insurance score (many companies use letters A-L, I enjoy one company that uses 1-44). Also, your insurance score will vary company to company & will also ebb and flow between lines of business (auto or home). It depends on the exact factors they look at. I know people next to shorter credit histories (which would lower their credit score)that got perfect insurance score. You really don't know for sure what the factors are - I don't & I am in the business.
Statistics own shown that people with lower insurance score have more claims paid (either one claim i.e. higher or several claims). There have be study after study on this. Progressive has done this for about 10 yrs presently.
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