For a lay person, it is difficult to imagine how there could be a correlation between credit scores and home insurance premium. However, a large number of insurance companies use the credit score to arrive at an insurance score using customized software.
According to insurers, people who better manage their finances are less likely to file insurance claims. Thus, insurers give preference to customers with better credit scores and are likely to charge them lower premium for their home insurance.
Insurers will typically use credit scores in conjunction with data like construction quality of the premises, location and risk from disasters amongst others to arrive at the risk profile and the applicable premium.
Thus, there is reason to cheer for those who command a good credit score. They must ensure that they negotiate a good premium rate for their home insurance, knowing well that insurers factor this into their calculations.
To read more about this correlation, clickhere
Your Comments
You have an nick blog on insurance. For information about insurances compare quotesfor the best deal from leading home insurance providers in the UK.
What is a lay person? Anyway, in addition to the post above, insurance companies also consider people with bad credit less likely to pay their premiums. People who fail to pay their homeowners insurance bills, cost insurance companies thousands of dollars each year. Sometimes, insurance companies insure homes a month or so with no payment before they cancel the policy. This makes it easy to see why insurance companies consider credit to determine rates.
I was unaware of the correlation between credit scores and home insurance rates, but it makes sense.
Jason
Child Home Insurance
yeah, me too, I did not know the correlation of the credit. Thanks for the great post!
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Not only can your credit affect your insurance rate, but your race may also play a part in how much you pay for insurance.
It would seem that certain races tend to have common credit related issues as well causing it to look like race is one of the determining factors, though this is probably not true.
The best way to insure you pay the lowest possible rate is to get multiple quotes from agents right in your community.
Not only can your credit affect your insurance rate, but your race may also play a part in how much you pay for insurance.
It would seem that certain races tend to have common credit related issues as well causing it to look like race is one of the determining factors, though this is probably not true.
The best way to insure you pay the lowest possible rate is to get multiple quotes from agents right in your community.
Not only can your credit affect your insurance rate, but your race may also play a part in how much you pay for insurance.
It would seem that certain races tend to have common credit related issues as well causing it to look like race is one of the determining factors, though this is probably not true.
The best way to insure you pay the lowest possible rate is to get multiple quotes from agents right in your community.
I am not sure why my post is here three times. It was unintentional, for whatever reason that it is.
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Your blog is very nice & beautiful.
Thank you.
Its a very nice bog.
Thank you.
I never thought about this correlation before, but it really makes sense. I have wondered why my insurance premium is not the same as and not even close to my sister’s insurance premium considering that we got our home insurance at about the same time from the same company and our houses are almost the same size and built on the same year! At first, I thought the disparity was dubious, but I understand now. I have a better credit score, that’s why! Thanks for this helpful entry.
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