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 Posted: Thu Oct 02, 2008 4:26 am Post subject: Auto insurance application information |
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While filling up my auto insurance application, I have found some queries regarding my credit status. Why do they need this information? Also would like to know if my insurance rates may vary keeping with the points that I received so far. Does my driving track-record hold any significance too?
Caromel_marquez
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Caromel_marquez
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| Posted: Thu Oct 02, 2008 7:13 am Post subject: |
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Well, you may find some useful suggestions in the following forum discussion
http://www.ampminsure.org/misc/credit-score.html
It has been happening in the automobile insurance industry for quite some time now and gradually is becoming a normal practice. The insurers are taking time to pee- into the credit history of their applicants before writing them the coverage.
Its not been established by the facts though, but according to the insurers the policy holders with poor credit rating are tend to file more claims over a period of time. |
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JeremyHolter
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| Posted: Thu Oct 02, 2008 7:29 am Post subject: |
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The sinister association between the credit score and the insurance premium has worried the insurance consumers time to time. Like Jeremy has said that there is no fact behind this association, but it has grown as a general perception. Hence, it'd be wise to maintain a clear credit report rather than worrying about it at the time of applying for the insurance.
| Quote: | | Also would like to know if my insurance rates may vary keeping with the points that I received so far. Does my driving track-record hold any significance too? |
If something that will matter is your driving record. Be rest assured that the points in your driving license are gonna shoot your premium rates up. It may even alter your insurability as well. If you have been somewhat regular in accumulating points against your license, you'll be required to pay more.
However don't give misleading information in your application. The underwriters are gonna find it out anyways and they may even consider to decline your application for providing wrong information. |
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jeorge
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| Posted: Thu Oct 02, 2008 10:20 am Post subject: |
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Hi friends...see I think its all about financial responsibility. It could help you reach your future responsibility to a great extent. Insurance carriers would make good use of it to determine the future risks involved in covering you. So I'm sure you understand the significance of this factor through all phases of processing your insurance application. Regards Plasticmind
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Plasticmind
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| Posted: Thu Oct 02, 2008 10:33 am Post subject: |
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See, what the insurance carriers would look at your financial responsibility, then won't take your credit report into consideration. They would actually identify the financial group to which you'd belong, based on the data forwarded by the credit report service.
They have their own software to which they would convey the financial data regarding you and it would help them calculate and arrive at the rate that they are gonna offer you. The action of the rating software or the data-processing tasks would carry on in the back end, while you'd come to know the rate when it actually surfaces.
Regards, Fatman |
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fatman
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| Posted: Thu Oct 02, 2008 10:40 am Post subject: |
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My friend, it is not only about credit- insurance companies would also take into consideration many of the following factors-
- Your driving track record
- The kind of vehicle that you use to drive
- the distance that you generally cover
- the number of years for which you have been driving
So, I believe your credit information is just one amongst many pieces. Roddick |
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roddick
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| Posted: Thu Oct 02, 2008 2:13 pm Post subject: |
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| Quote: | | Insurance carriers would make good use of it to determine the future risks involved in covering you. |
Credit history has no relationships to risk/exposure... only as what was mentioned... people with lower credit scores tend to file more claims. Two different things and who basing a premium rate on one's credit history should be illegal in all states
(it's only illegal in a few right now). |
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tcope
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