Factors determining insurance rates

[Pennyrick]

Interesting item in USA Today and some other places about insurance rates across the nation.

It appears the most important factor influencing insurance rates is not your driving record, age, value of the vehicle or the city/state you live in.... It is your credit rating!!!

What about that Bob D.?

 

[Copperman]

I've known that for years. I thought it was common knowledge. Go figure.

 

[Bob Denman]

It's a big factor... :thumbup:

...But still not the biggest.

 

[Chupaca]

Yeah..!!

once they know your worth something..it eliminates the risk...:roflblack::roflblack: but it is a contributing factor and always has been. It probably goes hand in hand with your record...:dontknow: there must be an order to all the factors and I would imagine it sets high....:thumbup:

 

[ARtraveler]

A good point DT.

I can see bad credit going hand in hand with other factors that can lead to a bad driving record. Not the case all the time, but its in there.

:chat::chat:

 

[Orange Spyder Man]

I think it another way for insurance company's to finagle a way to raise their profits..

osm

 

[wyliec]

A good point DT.

I can see bad credit going hand in hand with other factors that can lead to a bad driving record. Not the case all the time, but its in there.

:chat::chat:

Are you stereotyping?

 

[vided]

I think it another way for insurance company's to finagle a way to raise their profits..

osm

:agree::agree:

 

[Bob Denman]

 

[Bob Denman]

Would you like to know more about how the rates that you pay are determined?
Every State has their own insurance rules; yours may be different than my example: I'm speaking about New York.
In New York; companies may add surcharges to your policy for accidents or convictions that fall within a specified length of time. (The Experience Period) In New York; that period is 39 Months.
So if you've had an accident in which you were judged to be "At-fault" within that period of time prior to purchasing insurance; your rates are going up! (We are no discussing Accident forgiveness at this time)
However: for underwriting purposes, a Company is NOT bound by the 39 Month rule... They can use whatever timeframe they desire, in an attempt to protect their pricing strategy... :shocked:
As an example; many companies routinely look back far beyond any normal experience period, when looking for alcohol or drug-related convictions...
So while they can't add a surcharge to a policy for an older accident or conviction; they sure as heck can re-tier you... nojoke

 

[ARtraveler]

Are you stereotyping?

It would appear so. :roflblack::roflblack:

 

[Bob Denman]

You may want to call it stereotyping; but if the actuarial folks can back it up??? :dontknow:

(Trust me: they can! nojoke)