Who think eligibility for coup¨¦ insurance/rates should be base solely on your driving history?
I read a story that says that insurance companies are trying to base their rates for saloon insurance on your credit rating, age, and gender etc. Is that right/do you agree or disagree with the practice,
what do you reason the right way is to determine insurance rates etc?
Answers:
I think the criteria should be driving dictation and age. At 18 years old, I was a very bad driver. But, after getting a speeding ticket and seeing how much my insurance was costing me, I toned down my driving habits. I don't believe credit rating should own anything to do with it because your credit does not show what kind of driver you are, of late what kind of spender you are. I have also hear that some insurance companies base your rate on your educational rank. What does that have to do with your driving skills? Base the rates on what matter, not ways you figure out to get more money out of someone.
Dream on.
Credit ratings are used as an indicator of the type of person applying for coverage. Would YOU want to insure someone near $130,000.00 in credit card debt, two bankruptcies and a upcoming forclosure on their home? Someone like this, statistically, is a very unpromising risk. It is a fact that about 40% of adjectives costs associated with insurance claims and operations are due to fruad and fraud prevention. The actual cost to indemnify losses is comparatively reasonable.
I absolutely think it should be base on your driving record rather than age-old statistics or something foolish close to your credit report. To this day, I have not figure out how having a bad credit evaluation makes you more of a liability on the road.
Regardless, I doubt it will transformation any time soon, so I guess we need to suck it up. It's not really like we could prohibition the car insurance companies...then we'd REALLY be screwed.
The lesson here? They do it because they can.
There are two sides to this story. Charging inhabitants with low credit higher rates enable companies to charge people with better credit lower rates. Since nearby is a statistical relationship between poor credit and accidents, it makes sense to charge more.
There are companies that do not run credit. You can ask when you return with a quote. Those companies are a bad deal to culture with good credit, but other to people with bleak credit (or any of the other factors).
Actuaries, who figure out how to set up "risk pools" in insurance, enjoy to strike a balance between polocies that enable companies to differentiate between different types of drivers and polocies that will drive to copious people away. As a result, different companies set up different risk pools. This is why insurance rates differ so drastically from company to company. I once asked for several quotes and found out the my premium would be 400$ higher at some places. This is because of risk pooling.
In the train, I like existing policy because it means that worthy deals are out there. Under a pure driving transcript system, insurance rates would be similiar accross the board. This would make it eaiser to shop for insurance, but harder to find good deal.
The bigger the liabiltiy the more money you are going to be spending. I don't think it is right, but you can't mess with "The Mighty Dollar Bill."
driving dictation
Yes---BUT they incorporate credit history because there is risk involved surrounded by receiving payments. College grad. is also a factor--WHY.. I don't understand that. I'm sure near are other apparently "stupid" factors but ask their underwriters....
Related Questions:
what do you reason the right way is to determine insurance rates etc?
Answers:
I think the criteria should be driving dictation and age. At 18 years old, I was a very bad driver. But, after getting a speeding ticket and seeing how much my insurance was costing me, I toned down my driving habits. I don't believe credit rating should own anything to do with it because your credit does not show what kind of driver you are, of late what kind of spender you are. I have also hear that some insurance companies base your rate on your educational rank. What does that have to do with your driving skills? Base the rates on what matter, not ways you figure out to get more money out of someone.
Dream on.
Credit ratings are used as an indicator of the type of person applying for coverage. Would YOU want to insure someone near $130,000.00 in credit card debt, two bankruptcies and a upcoming forclosure on their home? Someone like this, statistically, is a very unpromising risk. It is a fact that about 40% of adjectives costs associated with insurance claims and operations are due to fruad and fraud prevention. The actual cost to indemnify losses is comparatively reasonable.
I absolutely think it should be base on your driving record rather than age-old statistics or something foolish close to your credit report. To this day, I have not figure out how having a bad credit evaluation makes you more of a liability on the road.
Regardless, I doubt it will transformation any time soon, so I guess we need to suck it up. It's not really like we could prohibition the car insurance companies...then we'd REALLY be screwed.
The lesson here? They do it because they can.
There are two sides to this story. Charging inhabitants with low credit higher rates enable companies to charge people with better credit lower rates. Since nearby is a statistical relationship between poor credit and accidents, it makes sense to charge more.
There are companies that do not run credit. You can ask when you return with a quote. Those companies are a bad deal to culture with good credit, but other to people with bleak credit (or any of the other factors).
Actuaries, who figure out how to set up "risk pools" in insurance, enjoy to strike a balance between polocies that enable companies to differentiate between different types of drivers and polocies that will drive to copious people away. As a result, different companies set up different risk pools. This is why insurance rates differ so drastically from company to company. I once asked for several quotes and found out the my premium would be 400$ higher at some places. This is because of risk pooling.
In the train, I like existing policy because it means that worthy deals are out there. Under a pure driving transcript system, insurance rates would be similiar accross the board. This would make it eaiser to shop for insurance, but harder to find good deal.
The bigger the liabiltiy the more money you are going to be spending. I don't think it is right, but you can't mess with "The Mighty Dollar Bill."
driving dictation
Yes---BUT they incorporate credit history because there is risk involved surrounded by receiving payments. College grad. is also a factor--WHY.. I don't understand that. I'm sure near are other apparently "stupid" factors but ask their underwriters....
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