Understanding How Your Credit History May Affect Your Car Insurance Coverage

Many personal auto insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new insurance, keep in mind that many insurers are looking at your credit history. I hope that we will be able to let you know why and how they do this.

The reason that some insurance companies use credit information is because they feel there is a direct correlation between consumer's credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to severe insurance losses.

Many insurance companies still use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance. Therefore, if you have not established a credit history yet, the companies that use credit history may not be best for you. They may not allow you to be eligible for certain discounts, which could result in higher premiums.

The companies that do use credit scoring will still use other factors in determining your premium. They will also use your age, driving history, type of vehicle, where you live in determining how much you should pay for your insurance.

Is it fair for an insurance company even look at my credit information without my permission? The answer is yes. The Federal Fair credit-reporting act says "Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title." This can be found at http://www.ftc.gov/os/statutes/fcra.htm

If you feel that your credit history is better then the insurer can find, make sure the insurer has your correct name, address, social security number, and date of birth.

Some insurance companies will look directly at your actual credit reports when determining your rate, however most will use what is called an "insurance credit score." An insurance credit score is developed by using statistical techniques and methods to predict the likelihood a consumer will have a higher than anticipated losses. These are similar to what lenders use to predict the reliability of an applicant repaying a loan.

Insurance companies use many factors in determining your credit score. Here are some examples of those factors:

. Public records: bankruptcy, collections, foreclosures, liens, charge-offs, etc. . Past payment history: the number and frequency of late payments and the days between the due date and late payment date. . Length of credit history: the amount of time you have been in the credit system. . Inquiries for credit: the number of times you have recently applied for new credit, including mortgage loans, utility accounts, and credit card accounts. . Number of open lines of credit: the number of credit cards, whether you use them or not. . Type of credit in use: major credit cards, store credit cards, finance company loans, etc. . Unused credit: how much you owe compared to how much credit is available to you.

Your insurance credit score may differ from company to company, as they will use different factors in determining your premium. Notice that we call it an insurance credit score. This means that it encompasses many factors including credit.

Since each insurance company uses different techniques to determine your credit score it is hard to tell you what a good credit score is. Usually a good credit score will result in lower premiums.

Your agent or company is not obligated to tell you your credit score. In fact, they might not even know what it is. All they usually know is that your credit score qualifies you for a specific rate or policy. Some companies also offer better rates under each qualifying tier.

If you feel that there is incorrect information on your credit report, you should tell the credit bureau. If you report and error, the credit bureau must investigate the error and get back to you within 30 days. You can ask the credit bureau to send a notice of the correction to any creditor or insurer that has checked your file in the past six months. Once the errors are corrected, it is a good idea to get a new copy of your credit report several months later to make sure the wrong information has not been reported again.

The three national credit bureaus are:

. Trans Union (www.transunion.com or 800-888-4213)

. Equifax (www.credit.equifax.com or 800-685-1111)

. Experian (www.experian.com or 888-397-3742)

Tell your insurance company. Do not wait until the credit bureau investigates the errors to contact your insurer. Tell your insurance company right away and ask if the errors will make a difference in your insurance. If the errors are big, tell your insurer that you are disputing the information and ask if they will wait to use your credit information until the errors are corrected. Small errors may not have much affect on your insurance credit score. If the errors are big, it can make a significant difference in your premium. Some companies are unable to adjust the premiums until the score is corrected, but it does not hurt to ask.

If you have taken the steps to improve your credit, score you should ask your insurance company to re-evaluate your credit score at renewal.

Visit http://www.carinsurance.com For Lowest Rates Available

Jon Register is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.

CarInsurance.com's online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online.

Consumers can receive quotes from many insurance companies, in some states you are able to purchase your insurance instantly, online. You don't have to drive your car to buy car insurance. Buy online...anytime!

Escalate firepower to win the acne war SouthCoastToday.com, MA - 1 hour ago Fighting acne involves conducting warfare on many fronts. One front is the overproduction of male hormone that occurs in puberty and at other stages of life ...

Acne: Prestige Beauty's New Bull's-Eye Posted Sep 5, 2008 Women's Wear Daily - 2 hours ago by Molly Prior Prestige beauty firms are raising an issue with raised red bumps — notoriously referred to as acne — and increasingly are adding ...

Best Syndication

Acne - The Aftermath of Acne Breakouts Best Syndication, CA - 14 hours ago If you suffered from acne, you would know that severe acne like cystic lesions could create scarring, redness and pigmentation. If the acne was not treated ...

Steroid abuse acne scars are a real eyesore Irish Medical Times, Ireland - Sep 3, 2008 The BBC reported that while mild doses can cause slight acne, this man used such severe doses the rash over his back and chest ulcerated. ...

Condom Lubricant Used as Acne Cure in Cambodia FOXNews - Aug 29, 2008 A condom lubricant produced by a health organization to protect sex workers and gay men is being hailed as an acne cure by some in Cambodia, ...

Best Syndication

Acne Does Not Choose - Be it a Man or a Woman Best Syndication, CA - Sep 1, 2008 You see television programs about acne, you read articles about acne, and the internet is loaded with information about acne. Despite all these knowledge, ...

Michala Banas Joins Celebrity Cast Supporting Acne Treatment ... Free press releases (press release), UK - Sep 1, 2008 McLeod’s Daughters actress Michala Banas becomes new face of acne management treatment, Proactiv Solution. Popular Australian celebrity Michala Banas has ...

Acnecentre.com Launched With A New Key For Acne Fetters PR Web (press release), WA - Sep 1, 2008 Acnecentre -- A new acne and skin care advice portal now works on the latest medical ideas to help teens and adults from acne hazards. ...

Photo retouching service zaps age lines, acne and more Tribune Review, PA - Sep 1, 2008 For $7 per photo, his staff of five designers would remove acne and age spots, smooth out crows feet and age lines, even out skin tone and reduce shininess. ...

Study Outlines Teens' Preferences And Trade-offs For Freedom From Acne Science Daily (press release) - Aug 20, 2008 20, 2008) — Teens report that they would pay about $275 to have never had acne, and are willing to pay considerably more to be acne-free than to have 50 ...