Auto Insurance Montreal

Posts Tagged ‘credit’

auto insurance quotes:

Question by singhjg: Impact of Auto Insurance Quotes on Credit History?
I am with Geico currently and is up for renewal. I am planning to take quotes from different companies. May be they offer me a low rate. But I am scared by the fact that it will impact my credit score. Can you please advice? I have been driving for 4.5 yrs with clean record.

Best answer:

Answer by John K
It’s the other way around. Insurance companies will look at your credit score, but it won’t be impacted as if you were trying to get a loan. So if you have good credit you will keep good credit and get a better rate on your insurance. Also, if you’ve been driving for that long with a clean record, go look at places like Allstate or any of the others. When I left Progressive, my rates dropped and I received better coverage. Shop around. Every year I go with out an accident my Allstate rates keep going down.

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auto insurance ratings:

Question by etinge2: Why does ones Credit Rating have anything to do with Auto insurance?
To be honest I don’t feel that a persons credit rating have anything to do with car insurance. A quote should be an honest quote of what it cost per month and per year. Either you pay your car insurance or not. What risk is this to the Insurance company? It can be canceled by the company if payment is not made. The company doesn’t pay for an accident that occur if the policy is not in force. There is no loss to them. What is the point of making someone pay a higher premium if they haven’t had an accident nor was it their fault. This is unfair racking it in. Who made this policy to base it on your credit rating? The economy is in a depression right now so many people will have bad credit ratings and those who have fallen into this mess now will have higher payments and have never had an accident or it wasn’t their fault. They are not responsible for the deficit we have today. All rates should depend on Make, Model and Year of your car. A Credit Rating has nothing to do with paying your monthly amount for coverage. Can you tell me why, if no accidents have been caused?

Best answer:

Answer by tori a
They want to have some assurance that you are going to pay them back.

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car insurance quotes:

Question by aim2lead: Car Insurance quotes – Inquries to my credit file?
I am planning to buy a used car. So I began checking the insurance quotes online. I gave my personal information like Social etc. Now when I checked my credit file there are inquiries made by some insurance companies. Now my doubt is, will these effect my credit score. I am lot worried because, I have checked too many insurance quotes for the last one week. I doubt it will make my credit score fall. Please help if there is a way to rectify this.

Best answer:

Answer by src50
Those should be “soft” hits (not applications for new credit) and won’t affect your credit score very much. Most insurance companies do factor in credit history when determining rates.

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car insurance quotes:

Question by elags50: Why is my credit ratingscore brought down for getting car insurance quotes?
I’m trying to get auto and renter’s insurance and I do not understand why my credit score is brought down because of this. Can’t they tell I’m not our trying to get several credit cards or lines of credit or loans? How can this be dealt with and changed or stopped? If this is going to happen, how will my credit look in two years when I am ready to buy a newer vehicle?

Best answer:

Answer by jcmark4501
Why are they checking your credit? If you have alot of credit checks in a row, most loan officers understand what you are doing and do not count that against you. Of cours,e if you have shitty credit, nothing will help you.

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free auto insurance quotes:

Question by nemahknatut88: Free online auto insurance quotes with soft credit checks?

Best answer:

Answer by Sam
Please note:
All inquiries of a similar nature done in a 3 week window are treated as one.
This is to allow the customer to “shop around”.
(this does not apply to credit cards).
Also, inquiries only bring down your rating only 1 or 2 points and only affect your score for 1 year, even though they show up on your reports for 2 years..

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auto insurance ratings:

Question by etinge2: Why does a “Credit Rating” have anything to do with Auto insurance?
To be honest I don’t feel that a persons credit rating have anything to do with car insurance. A quote should be an honest quote of what it cost per month and per year. Either you pay your car insurance or not. What risk is this to the Insurance company? It can be canceled by the company if payment is not made. The company doesn’t pay for an accident that occur if the policy is not in force. There is no loss to them. What is the point of making someone pay a higher premium if they haven’t had an accident nor was it their fault. This is unfair racking it in. Who made this policy to base it on your credit rating? The economy is in a depression right now so many people will have bad credit ratings and those who have fallen into this mess now will have higher payments and have never had an accident or it wasn’t their fault. They are not responsible for the deficit we have today. All rates should depend on Make, Model and Year of your car. A Credit Rating has nothing to do with paying your monthly amount for coverage. Can you tell me why, if no accidents have been caused? It doesn’t have a feasible answer to me.

Best answer:

Answer by seaportma
In a nutshell, (statistically) people who have a poor credit score are more likely to file a claim.

Actuarial studies show that how a person manages his or her financial affairs, which is what an [insurance score] indicates, is a good predictor of insurance claims. Insurance scores, plus other factors such as age, driving record, make and model of your car, and how many insurance claims have been filed in the past, are used to help insurers differentiate between lower and higher insurance risks and thus charge a premium equal to the risk they are assuming.

The goal of every insurance company is to correlate rates for insurance policies as closely as possible with the actual cost of claims. If insurers set rates too high they will lose market share to competitors who have more accurately matched rates to expected costs. If they set rates too low they will lose money.

Some states ban the use of credit scores as a consideration. This might been seen as benefiting those in lower economic groups — but others in the risk pool are subsidizing these people (from a statistical perspective).

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auto insurance ratings:

Question by jason r: does exersizing gap insurance coverage reflect negative with regard to credit history or ratings?
i had an accident a few years ago and came to find out that i didnt have the proper insurance on the car. the damage would not be covered but it was/is on lien and have continued to pay since. i recently found out that i can exersize the gap insurance optioned for when accepting the auto loan but am afraid to degrade my credit rating since im looking to buy a home in the very near future. advice?

Best answer:

Answer by mbrcatz
No, it doesn’t affect your credit history or claims history.

Keep in mind, though, that gap only pays the DIFFERENCE between the actual cash value of your car, and the loan balance. So it doesn’t pay from dollar zero, if you weren’t carrying collision insurance.

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auto insurance companies:

Question by shawn: Do you know that many auto insurance companies base your rate on your Credit Score>? Should this be legal>?
I just feel that if the State is going to require by law auto insurance ,, then your credit should not have anything to do with your rate! Many companies don’t even tell you they are running your credit, but they do! This needs to be changed !
what’s next they going to charge us what the wish on our next Big Mac based on our credit score?

Best answer:

Answer by oklatom
Yes, I knew it. Nothing new about it, a credit score tells a lot about a person and is one of the things they check to set your rates.

They certainly don’t keep it a secret that your credit score will be run, and your driving record will be looked at also.

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