What is credit scoring?
A credit score is a snapshot of your cred at one point in time. The credit information contained in the report is put through a mathematical formul that assigns weithg to the various factors and summarizes your credit information in a 3 digit number ranging from zero to 999. Generally, the higher the number the more financially responsible is the consumer.
How is the credit scoring used?
If your insurance company relies on credit scoring they may use it in 2 ways:
Underwriting- Deciding whether to issue you a new policy or to renew your existing policy
Rating- Deciding waht price to charge your for your insurance by placing you in a specific rating tier.
What affects a credit score?
bankruptcy, collection, foreclosure
Number and frequency of late payments
Homeownership- whether you own or rent
Outstanding debt
Know your credit History
There is a good chance your current or prospective insurance company is looking at your credit. Therefore it is a good idea to review your credit history to make sure it is accurate . You can obtain a free copy of your credit report at AnnualCreditReport.com
In the state of Kentucky, credit scoring is not currently prohibited as a criteria for underwriting or rating.
Kentucky auto insurance
Credit Score
Dick Watts Insurance
Sunday, November 20, 2005
About Buying Auto Insurance in Kentucky
Here are some things you should know about Buying Auto Insurance in Kentucky
How is your insurance Rate determined? Two factors determine what you pay for car insurance. The first factor is underwriting and the second factor is rating. Insurance companies underwrite to assess the risk assocated with an applicant, group the applicant with similar ists and decide if the company will accep the applicaton.
Several Factors Affect Risk Rating
Your driving record, area in which you live, gender and age, marital status, prior insurance coverage, vehicle use and make and model of your vehicle are all factors that will affect the rate.
Ask Your Agent About Discounts
Discounts are awarded because the insurance company sees you as a "better risk" Discounts to look for:
Collision Coverage pays for physical damage to your car as a result of you auto colliding with an object such as a tree or another car.
Comprehensive Coveage covers fire, vandalism, & theft.
Optional Coverages require an additional premium
Read you policy carefully:
You should be aware that an auto insurance policy is a legal contract. It is written so your rights and responsibilities as well as those of the insurance company are clearly satets. When you purchase an auto insurance you will receive a policy. You should read that policy and make certain that you understand its contents.
If you have questions about your auto insurance policy contact the Watts Team
Auto Insurance KY
Dick Watts Insurance
Buying Auto insurance
Disclaimer: Every insurance policy is different. The above is an example only. Read your own policy to find out exactly what is covered.
How is your insurance Rate determined? Two factors determine what you pay for car insurance. The first factor is underwriting and the second factor is rating. Insurance companies underwrite to assess the risk assocated with an applicant, group the applicant with similar ists and decide if the company will accep the applicaton.
Several Factors Affect Risk Rating
Your driving record, area in which you live, gender and age, marital status, prior insurance coverage, vehicle use and make and model of your vehicle are all factors that will affect the rate.
Ask Your Agent About Discounts
Discounts are awarded because the insurance company sees you as a "better risk" Discounts to look for:
- Multiple Vehicles
- Driver Education Courses
- Good Student
- Safety Devices
- Anti-Theft devices
Collision Coverage pays for physical damage to your car as a result of you auto colliding with an object such as a tree or another car.
Comprehensive Coveage covers fire, vandalism, & theft.
Optional Coverages require an additional premium
Read you policy carefully:
You should be aware that an auto insurance policy is a legal contract. It is written so your rights and responsibilities as well as those of the insurance company are clearly satets. When you purchase an auto insurance you will receive a policy. You should read that policy and make certain that you understand its contents.
If you have questions about your auto insurance policy contact the Watts Team
Auto Insurance KY
Dick Watts Insurance
Buying Auto insurance
Disclaimer: Every insurance policy is different. The above is an example only. Read your own policy to find out exactly what is covered.
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