Why does insurance companies still request our credit report for each half year renewal to set out our?
July 17, 2010 - 6:08 am
insurance cost even if we paid the policy renewal on time throughout the years
States that allow rate determination using credit, require that the companies use it EVERY time they rate your policy.
If your credit goes up or down, your rates will go down or up, also. Companies aren’t allowed to ’skip’ part of the rating process.
If you’re really asking, why do insurance companies factor in credit, it has NOTHING to do with you paying your insurance bill on time. The data shows that there’s a direct corrolation between credit score, and claims activity – the lower the credit, the more likely you are to file a claim, and the more likely that the claim will be larger.
July 17th, 2010 at 11:14 am
States that allow rate determination using credit, require that the companies use it EVERY time they rate your policy.
If your credit goes up or down, your rates will go down or up, also. Companies aren’t allowed to ’skip’ part of the rating process.
If you’re really asking, why do insurance companies factor in credit, it has NOTHING to do with you paying your insurance bill on time. The data shows that there’s a direct corrolation between credit score, and claims activity – the lower the credit, the more likely you are to file a claim, and the more likely that the claim will be larger.
References :
July 17th, 2010 at 11:31 am
Yes – I agree with the answer given by "mbrcatz". this has nothing to do with your paying the insurance premium but a requirement that the insurance company has to abide by, if the insurance rates are based on the credit.
References :