Tuesday, November 20, 2007
Your Credit Score and Insurance
From Bobbie Sage,
Your Guide to Personal Insurance.
FREE Newsletter. Sign Up Now!
Determining an Insurance Policy Premium or Insurance Quote on Your Credit Score
How Your Credit Score Can Change Your Insurance Quote or Insurance Policy
Did you pay all your bills this month? Your insurance company wants to know. Credit scoring, the term used by insurance companies to rate your credit, has been a disaster for some consumers. Most insurance companies are now basing the cost of your insurance policy on your credit score. Missing as little as two payments on credit cards or other financial obligations could lead to your insurance premium possibly doubling. If your credit score is bad you could pay more when getting an insurance quote. And, regardless of the time you have been with your insurance company or your loss history, a low credit score could lead to a higher insurance premium or possible loss of your policy.
Not Responsible With Your Money...
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Not Responsible on the Road?
Many are asking, "What does one's credit rating or credit score have to do with their insurance policy premium or insurance quote?" The answer may surprise you. Insurance companies feel that if you are not responsible with your money, then you are more than likely not going to be responsible on the road. According to his recent statement to CBS, Donald Hanson of the National Association of Independent Insurers agrees. Hanson stated, "Research indicates that people who manage their personal finances responsibly tend to manage other important aspects of their life with that same level of responsibility and that would include being responsible behind the wheel of their car or being responsible in maintaining their home." Some disagree with Hanson's ideas on insurance credit scoring and feel it creates a hardship for many who are already struggling.
Using a Credit Score for an Insurance Quote and an Insurance Policy Premium is Unfair
Critics feel using a credit score for an insurance quote or insurance policy premium is unfair and hurts only the working class. A great deal of consumers that have a low credit score are blue collar workers. Opponents argue that the low economy has put a strain on the large amount of working class in America. While struggling to pay for basic necessities they may miss a few payments, which in turn could make the
he Top Ten Insurance Myths You Need to Know!
From Bobbie Sage,
Your Guide to Personal Insurance.
FREE Newsletter. Sign Up Now!
Myth #1: Hey, You're Paying the Premiums... Insurance Should be Bought and Used for Every Accident and Disaster.
Insurance is designed to protect one from catastrophic disasters. An insurance rule of thumb: If you can pay for the loss or damage without a financial hardship then pay it, otherwise expect your insurance premium to eventually show an increase. Also, buying every type of insurance just isn't necessary. Sometimes the risk is worth taking rather than paying a premium. Learn more at Don't Buy Insurance You Don't Need
Myth #2: If I am Alive, I Must Need Life Insurance!
Life insurance is designed to take care of one's dependants after the caregiver's death. If you have no dependants, then you probably don't need life insurance.
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This includes children and retired persons... usually they don't have people that depend on their income so life insurance for these groups can, in rare instances, be beneficial but is usually unnecessary.
Myth #3: I'm the Breadwinner in the Home, So Only I Need Life Insurance.
Have you seen the cost of childcare lately? Add that along with housekeeping, food preparation, home accountant, and school transportation. From that list alone one can see how much a spouse really contributes to the household budget. It is estimated a non-working spouse contributes at least, but usually more, the equivalent of a full time job. For this reason it is important to buy life insurance for everyone in the household if the absence of their income would cause a financial hardship.
Myth #4: Whole and Universal Life are the Best Life Insurance Choices Since I Can Get My Money Back.
Term life insurance is probably the best choice for most. Term life is set for a specific term, like 10-30 years, with a much lower premium than whole and universal life. Your best bet? Buy term life and invest the premium difference in a retirement account. Lean more about Term, Universal, and Whole Life at Life Insurance Policy Basics.
Myth #5: Flood Insurance is Only for People Who Live in a High Risk Area.
Everyone who lives in a National Flood Insurance Program area is eligible and can buy flood insurance. These areas are not always prone to floods so even if you think your area is low risk you may be eligible. Check with your insurance agent to learn more or find additional information at Why didn't my policy pay for damage caused by a flood?
yth #6: My Son Uses the Car for Delivering the Newspaper and His Pizza Delivery Job. He's Not Self-Employed So Our Auto Insurance Will Cover Any Accidents.
If your vehicle is used for anything but personal use, then you will probably need to extend your personal auto policy to cover business use of your vehicle. Don't think just because you were unaware of your coverages this will get your accident paid for--your insurance policy is a contract that you agreed to adhere to. If you don't understand all the coverages in your contract you need to contact your agent about the questions you have.
Myth#7: I Don't Need Disability Insurance... If I Become Disabled Social Security Will Take Care of Me.
Don't count on Social Security to take care of all your needs if you become disabled.
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If you are able to get Social Security for your disability (not all get approved to receive disability benefits so don't assume you will) then you will still have to wait months before you receive benefits and your disability needs to be long-term to qualify. And even if you qualify for benefits, will it match your current salary? Probably not. Find out more why disability insurance is important at Considering Disability Income Insurance.
Myth #8: If I Need to Stay in a Nursing Home When I am Older, The Government Will Pick Up the Bill.
Again, don't count on Medicare or Medicare Supplemental Insurance to pick up the bill. If you can qualify, Medicaid may pay up to half of the cost. Choosing long term care insurance can help you pay for the costs of a nursing facility or home care if the need arises. Also, do you really want your family to have to pick up the bill if you acquire a long term illness or disability? Long Term Care Insurance is a great option and if started early in life the premiums can be very reasonable. Find out more at Who Should Consider Long Term Care Insurance?
Myth #9: Umbrella Insurance Coverage is Just for Rich People.
Umbrella insurance is not just for the wealthy. With the common occurrence of lawsuits, umbrella insurance is a must for every home, auto, and watercraft owner. Umbrella insurance is designed to give one added liability protection above and beyond the limits on homeowners, auto, and watercraft personal insurance policies. With an umbrella policy, depending on the insurance company, one can add an additional 1-5 million in liability protection. Learn more about umbrella insurance at Why Every Policyholder Needs Umbrella Insurance
Myth #10: People Who Decide not to Purchase Health Insurance Don't Affect Others.
People who choose not to purchase health insurance eventually affect the lives of every American. There are many reasons why some Americans are uninsured. Regardless of the reasons, having so many uninsured individuals drives up the cost of goods when people get sick and cannot do their job. In addition, when many people in a company choose not to purchase health insurance, it sends a message to the employer that health insurance may not be an important benefit which in-turn could cost other workers a loss of their health insurance benefit. Also, when healthy people choose not to be a part of their company's health insurance pool, it raises the costs for everyone else because the risk is spread through less people. And, when people make such low wages that they cannot afford health insurance, the number of people eligible for Medicaid rises (which is paid by your tax dollars!). For these reasons, many have encouraged the government to switch to a Universal Health Care System where the government would help manage health care. Learn more at What is Universal Healthcare?
From Bobbie Sage,
Your Guide to Personal Insurance.
FREE Newsletter. Sign Up Now!
Determining an Insurance Policy Premium or Insurance Quote on Your Credit Score
How Your Credit Score Can Change Your Insurance Quote or Insurance Policy
Did you pay all your bills this month? Your insurance company wants to know. Credit scoring, the term used by insurance companies to rate your credit, has been a disaster for some consumers. Most insurance companies are now basing the cost of your insurance policy on your credit score. Missing as little as two payments on credit cards or other financial obligations could lead to your insurance premium possibly doubling. If your credit score is bad you could pay more when getting an insurance quote. And, regardless of the time you have been with your insurance company or your loss history, a low credit score could lead to a higher insurance premium or possible loss of your policy.
Not Responsible With Your Money...
Sponsored Links
Travelers Car InsuranceComparison Shop for Car Insurance Online & Request Free Quotes Today!www.Auto-Insurance-Options.us
Importing from China ?Save upto 50 % on Cargo Insurance premiums. Get a free onine quotewww.FALCONinsurance.com.hk
Life Insurance RatesWhole Life Insurance Quote Current Life Insurance Rates & InfoFree-Quote-Life-Insurance.com
Not Responsible on the Road?
Many are asking, "What does one's credit rating or credit score have to do with their insurance policy premium or insurance quote?" The answer may surprise you. Insurance companies feel that if you are not responsible with your money, then you are more than likely not going to be responsible on the road. According to his recent statement to CBS, Donald Hanson of the National Association of Independent Insurers agrees. Hanson stated, "Research indicates that people who manage their personal finances responsibly tend to manage other important aspects of their life with that same level of responsibility and that would include being responsible behind the wheel of their car or being responsible in maintaining their home." Some disagree with Hanson's ideas on insurance credit scoring and feel it creates a hardship for many who are already struggling.
Using a Credit Score for an Insurance Quote and an Insurance Policy Premium is Unfair
Critics feel using a credit score for an insurance quote or insurance policy premium is unfair and hurts only the working class. A great deal of consumers that have a low credit score are blue collar workers. Opponents argue that the low economy has put a strain on the large amount of working class in America. While struggling to pay for basic necessities they may miss a few payments, which in turn could make the
he Top Ten Insurance Myths You Need to Know!
From Bobbie Sage,
Your Guide to Personal Insurance.
FREE Newsletter. Sign Up Now!
Myth #1: Hey, You're Paying the Premiums... Insurance Should be Bought and Used for Every Accident and Disaster.
Insurance is designed to protect one from catastrophic disasters. An insurance rule of thumb: If you can pay for the loss or damage without a financial hardship then pay it, otherwise expect your insurance premium to eventually show an increase. Also, buying every type of insurance just isn't necessary. Sometimes the risk is worth taking rather than paying a premium. Learn more at Don't Buy Insurance You Don't Need
Myth #2: If I am Alive, I Must Need Life Insurance!
Life insurance is designed to take care of one's dependants after the caregiver's death. If you have no dependants, then you probably don't need life insurance.
Sponsored Links
Real Estate CourseAvoid Paying Thousands To Learn Learn Online. Why Pay Thousands?www.ProfitsAndPower.com
Create Your Own WebsiteFree Drag & Drop website builder very easy to use. No HTML to learnwww.bluevoda.net
Life InsuranceLife Insurance For Teachers Current Life Insurance Rates & InfoFree-Quote-Life-Insurance.com
This includes children and retired persons... usually they don't have people that depend on their income so life insurance for these groups can, in rare instances, be beneficial but is usually unnecessary.
Myth #3: I'm the Breadwinner in the Home, So Only I Need Life Insurance.
Have you seen the cost of childcare lately? Add that along with housekeeping, food preparation, home accountant, and school transportation. From that list alone one can see how much a spouse really contributes to the household budget. It is estimated a non-working spouse contributes at least, but usually more, the equivalent of a full time job. For this reason it is important to buy life insurance for everyone in the household if the absence of their income would cause a financial hardship.
Myth #4: Whole and Universal Life are the Best Life Insurance Choices Since I Can Get My Money Back.
Term life insurance is probably the best choice for most. Term life is set for a specific term, like 10-30 years, with a much lower premium than whole and universal life. Your best bet? Buy term life and invest the premium difference in a retirement account. Lean more about Term, Universal, and Whole Life at Life Insurance Policy Basics.
Myth #5: Flood Insurance is Only for People Who Live in a High Risk Area.
Everyone who lives in a National Flood Insurance Program area is eligible and can buy flood insurance. These areas are not always prone to floods so even if you think your area is low risk you may be eligible. Check with your insurance agent to learn more or find additional information at Why didn't my policy pay for damage caused by a flood?
yth #6: My Son Uses the Car for Delivering the Newspaper and His Pizza Delivery Job. He's Not Self-Employed So Our Auto Insurance Will Cover Any Accidents.
If your vehicle is used for anything but personal use, then you will probably need to extend your personal auto policy to cover business use of your vehicle. Don't think just because you were unaware of your coverages this will get your accident paid for--your insurance policy is a contract that you agreed to adhere to. If you don't understand all the coverages in your contract you need to contact your agent about the questions you have.
Myth#7: I Don't Need Disability Insurance... If I Become Disabled Social Security Will Take Care of Me.
Don't count on Social Security to take care of all your needs if you become disabled.
Sponsored Links
Create Your Own WebsiteFree Drag & Drop website builder very easy to use. No HTML to learnwww.bluevoda.net
Interstitial CystitisNatural Relief for Interstitial Cystitis- Click Here to Learn More!www.thenaturalbladder.com/
Real Estate CourseAvoid Paying Thousands To Learn Learn Online. Why Pay Thousands?www.ProfitsAndPower.com
If you are able to get Social Security for your disability (not all get approved to receive disability benefits so don't assume you will) then you will still have to wait months before you receive benefits and your disability needs to be long-term to qualify. And even if you qualify for benefits, will it match your current salary? Probably not. Find out more why disability insurance is important at Considering Disability Income Insurance.
Myth #8: If I Need to Stay in a Nursing Home When I am Older, The Government Will Pick Up the Bill.
Again, don't count on Medicare or Medicare Supplemental Insurance to pick up the bill. If you can qualify, Medicaid may pay up to half of the cost. Choosing long term care insurance can help you pay for the costs of a nursing facility or home care if the need arises. Also, do you really want your family to have to pick up the bill if you acquire a long term illness or disability? Long Term Care Insurance is a great option and if started early in life the premiums can be very reasonable. Find out more at Who Should Consider Long Term Care Insurance?
Myth #9: Umbrella Insurance Coverage is Just for Rich People.
Umbrella insurance is not just for the wealthy. With the common occurrence of lawsuits, umbrella insurance is a must for every home, auto, and watercraft owner. Umbrella insurance is designed to give one added liability protection above and beyond the limits on homeowners, auto, and watercraft personal insurance policies. With an umbrella policy, depending on the insurance company, one can add an additional 1-5 million in liability protection. Learn more about umbrella insurance at Why Every Policyholder Needs Umbrella Insurance
Myth #10: People Who Decide not to Purchase Health Insurance Don't Affect Others.
People who choose not to purchase health insurance eventually affect the lives of every American. There are many reasons why some Americans are uninsured. Regardless of the reasons, having so many uninsured individuals drives up the cost of goods when people get sick and cannot do their job. In addition, when many people in a company choose not to purchase health insurance, it sends a message to the employer that health insurance may not be an important benefit which in-turn could cost other workers a loss of their health insurance benefit. Also, when healthy people choose not to be a part of their company's health insurance pool, it raises the costs for everyone else because the risk is spread through less people. And, when people make such low wages that they cannot afford health insurance, the number of people eligible for Medicaid rises (which is paid by your tax dollars!). For these reasons, many have encouraged the government to switch to a Universal Health Care System where the government would help manage health care. Learn more at What is Universal Healthcare?
# posted by lockat @ 11:46 PM 
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