Why is our coupé insurance rate base on our credit mark?
It doesn't seem fair to wages higher insurance because our credit is bad! What do you guess?
Answers:
bad credit = irresponsibility.
it is because they hold evidence that the poorer your credit score the more likely you will receive into an accident.
Actuarial studies show that how a person manages his or her financial affairs, which is what an insurance ranking indicates, is a good predictor of insurance claims. Insurance scores are used to assistance insurers differentiate between lower and higher insurance risks and thus charge a premium equal to the risk they are assuming. Statistically, people who enjoy a poor insurance score are more likely to wallet a claim.
The goal of every insurance company is to correlate rates for insurance policies as closely as possible with the actual cost of claims. Source(s): (a) http://www.iii.org/media/hottopics/insur…
Because the background shows that lower credit score is an accurate predictor that there will be more claims, and those claims will also be more severe.
Why do 16 year olds own more claims? Why do people with lower credit score have more claims? No one has done a study, so not a soul knows why. The insurance industry doesn't CARE. The point is, the relationship exists, so it's fair.
It's a gripe of mine, that relatives LIKE discrimination when it works in their favor (like, you don't enjoy to pay the same existence insurance rates as a guy who's 80, and you don't have to pay one and the same car insurance as a kid who's 16), and only complain roughly speaking it when it works against them.
Discrimination is FAIR, because it lumps like risks together. Otherwise, there would with the sole purpose be one rate, ya know? And I DON'T think you want to pay alike rate as that guy with five DUI's. Source(s): agent, 21+ years
I know insurance companies do it.. but to put it mildly, thats all bs. It's similar to back in the mid 80's, insurance companies wouldn't write florists for disability insurance.. because THEY feel alot of florists were gay, and all would acquire AIDS or HIV. Personally, I don't think your credit score is an indicator of irresponsibility at adjectives. Wonder how the actuaries will figure in the sub-prime mess? Source(s): 21+ years insurance/group benefits
If you credit is discouraging its a sign of irresponsibility.......a clear indicator of risk..........
Related Questions:
Answers:
bad credit = irresponsibility.
it is because they hold evidence that the poorer your credit score the more likely you will receive into an accident.
Actuarial studies show that how a person manages his or her financial affairs, which is what an insurance ranking indicates, is a good predictor of insurance claims. Insurance scores are used to assistance insurers differentiate between lower and higher insurance risks and thus charge a premium equal to the risk they are assuming. Statistically, people who enjoy a poor insurance score are more likely to wallet a claim.
The goal of every insurance company is to correlate rates for insurance policies as closely as possible with the actual cost of claims. Source(s): (a) http://www.iii.org/media/hottopics/insur…
Because the background shows that lower credit score is an accurate predictor that there will be more claims, and those claims will also be more severe.
Why do 16 year olds own more claims? Why do people with lower credit score have more claims? No one has done a study, so not a soul knows why. The insurance industry doesn't CARE. The point is, the relationship exists, so it's fair.
It's a gripe of mine, that relatives LIKE discrimination when it works in their favor (like, you don't enjoy to pay the same existence insurance rates as a guy who's 80, and you don't have to pay one and the same car insurance as a kid who's 16), and only complain roughly speaking it when it works against them.
Discrimination is FAIR, because it lumps like risks together. Otherwise, there would with the sole purpose be one rate, ya know? And I DON'T think you want to pay alike rate as that guy with five DUI's. Source(s): agent, 21+ years
I know insurance companies do it.. but to put it mildly, thats all bs. It's similar to back in the mid 80's, insurance companies wouldn't write florists for disability insurance.. because THEY feel alot of florists were gay, and all would acquire AIDS or HIV. Personally, I don't think your credit score is an indicator of irresponsibility at adjectives. Wonder how the actuaries will figure in the sub-prime mess? Source(s): 21+ years insurance/group benefits
If you credit is discouraging its a sign of irresponsibility.......a clear indicator of risk..........
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