Apart from driving history and the type of car, credit score can also affect what to pay for auto insurance. Here are the answers to the common questions related to how credit score affects the costs of auto insurance premiums.
What are the common risk factors to influence auto insurance premiums?
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Usage of the car
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Driving history
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Claim history
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Geographic location (state of residence)
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Age
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Driving experience
Model and make influence not only the premium costs, but they also take important part in determining which type of insurance would be suitable for any particular applicant. For instance, a classic car insurance policy would be the best for someone who prefers the classics.
How does the credit score affect the price of auto insurance?
Most insurance carriers use a credit-based insurance score for determining the premium amount for car insurance in Sunnyvale and Mountain View. According to different studies, credit score helps them to assume insurance losses. In fact, more than 90% of the carriers consider credit score while determining auto insurance premiums.
How do insurers determine credit-based auto insurance score?
For the credit portion of the insurance score, the below mentioned factors are considered.
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Payment history including late payments and delinquencies
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Duration of the credit history
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Types of credit – such as loans and credit cards
While determining the car insurance credit score, marital status, sex, ethnicity, sex, income and geographic location aren’t usually considered.
How can the credit insurance score benefit the customer?
A credit insurance score allows the insurance carriers to quote the best and fairest rate for the customers. It lets the customers pay a lower premium based on credit score.
Does a more-than-perfect credit score ensure a good auto insurance score?
It’s like an apple-to-orange comparison. Insurance companies doesn’t look at the credit status or credit score the same way a financial organization does. Insurance companies only take the information pertaining to potential losses into consideration.
What about extraordinary life circumstance?
When it comes to a reputed and reliable insurance company that offers almost all sorts of insurance including group health insurance in Palo Alto and Stanford CA, they’re expected to value their customers and thus they take care of extraordinary life circumstances applicable in all American states. If the credit information of any given customer has been influenced directly by any of the following circumstances, the customer might be qualified for re-consideration of the premium.
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Death of the a child, parent or spouse
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Dissolution of marriage or divorce
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Any catastrophic incident declared by the state or federal government
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Serious injury or illness to the customer or to any of his/her family member
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Overseas military deployment
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Temporary loss of appointment due to involuntary unemployment
When it comes to buying a car insurance policy, the answers mentioned above come really handy and useful.
