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Independent Insurance Agent


Sullivan Insurance
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CREDIT RATING AND INSURANCE UNDERWRITING

Credit Rating and Insurance Underwriting

A big factor in determining the premium of a personal auto or homeowner policy has nothing to do with a person's driving record, property losses, or claims - it's his or her credit record.  According to Conning and Company, more than 90 percent of insurers use an applicant's credit history-his or her insurance risk score-to slot him or her into a certain program.  In Massachusetts, this is not currently the case, although there is a credit check for Homeowner Insurance, but it is pass or fail and it does not provide a "credit" or "debit" - the insurance companies only use it for determining if you are "qualified" for a homeowner policy.  Most Insurance companies in Massachusetts use this system, but there are still a few smaller company that do not.

When a person applies for insurance, the insurance company or agency asks for permission to pull his or her credit information. The insurer then secures a credit report from one or more of the credit bureaus-TransUnion; Experian; or Equifax. For more information on credit reports or to secure a copy of your own report, go to http://www.credit.com/.

Credit scores range from 300 to 850. If your score is below 650, you may have trouble getting insurance or you may have to pay a higher premium. In order to improve your credit score, keep in mind the following factors that influence the score.

? Payment history-The largest factor is credit and loan account payment history. A steady record of on-time payments going back several years shows responsibility.

? Debts owed-The number of accounts you currently have, including type and balance. Try to have just a few active accounts with low balances.

? Length of credit history-The longer your credit history, the better.

? New accounts-Every time you apply for a new account, a record of that application appears on your credit report and drops your score. Limit the number of applications you submit.

? Balance of accounts-It is best to have between two and six open credit cards and one or two loans.

? Negative records-Collections, judgments, and bankruptcy filings will drop your score.

If you have any questions or would like to learn more about credit scoring and how it is used in your state, please contact the agency - we would be glad to go over credit scoring and how it effects your insurance, if at all.

 

Credit Rating and Insurance Underwriting

A big factor in determining the premium of a personal auto or homeowner policy has nothing to do with a person's driving record, property losses, or claims - it's his or her credit record.  According to Conning and Company, more than 90 percent of insurers use an applicant's credit history-his or her insurance risk score-to slot him or her into a certain program.  In Massachusetts, this is not currently the case, although there is a credit check for Homeowner Insurance, but it is pass or fail and it does not provide a "credit" or "debit" - the insurance companies only use it for determining if you are "qualified" for a homeowner policy.  Most Insurance companies in Massachusetts use this system, but there are still a few smaller company that do not.

When a person applies for insurance, the insurance company or agency asks for permission to pull his or her credit information. The insurer then secures a credit report from one or more of the credit bureaus-TransUnion; Experian; or Equifax. For more information on credit reports or to secure a copy of your own report, go to http://www.credit.com/.

Credit scores range from 300 to 850. If your score is below 650, you may have trouble getting insurance or you may have to pay a higher premium. In order to improve your credit score, keep in mind the following factors that influence the score.

? Payment history-The largest factor is credit and loan account payment history. A steady record of on-time payments going back several years shows responsibility.

? Debts owed-The number of accounts you currently have, including type and balance. Try to have just a few active accounts with low balances.

? Length of credit history-The longer your credit history, the better.

? New accounts-Every time you apply for a new account, a record of that application appears on your credit report and drops your score. Limit the number of applications you submit.

? Balance of accounts-It is best to have between two and six open credit cards and one or two loans.

? Negative records-Collections, judgments, and bankruptcy filings will drop your score.

If you have any questions or would like to learn more about credit scoring and how it is used in your state, please contact the agency - we would be glad to go over credit scoring and how it effects your insurance, if at all.

 



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Testimonials
Helped with claim & never had I felt so at ease!!! I just had to write this review as I have never been treated so well than I have with this agency. I commend your staff (Diane, Mary, Kate, Irene and Patrick! From day one when my oldest son had a problem and needed special coverage (sr22) - your staff did everything my current agent wouldn't! I have NEVER felt so at ease when she told me that your agency could work with my son and I. Your agency has always gone above and beyond - we were treated in a fair, comforting way, and I always get a warm feeling knowing that everything would be taken care of for me and my family if we were in an accident or had a problem. We moved all of our insurance to your agency from a company in Andover that did nothing for us. Matter of fact, they turned their backs on us when I requested an SR 22 for my son. Truth have it, my ex insurance agent from that company has been my next door neighbor for over 25 years! What I received from your agency was a total 180 degrees different from what I received ... I just had to write this review as I have never been treated so well than I have with this agency. I commend your staff (Diane, Mary, Kate, Irene and Patrick! From day one when my oldest son had a problem and needed special coverage (sr22) - your staff did everything my current agent wouldn't! I have NEVER felt so at ease when she told me that your agency could work with my son and I. Your agency has always gone above and beyond - we were treated in a fair, comforting way, and I always get a warm feeling knowing that everything would be taken care of for me and my family if we were in an accident or had a problem. We moved all of our insurance to your agency from a company in Andover that did nothing for us. Matter of fact, they turned their backs on us when I requested an SR 22 for my son. Truth have it, my ex insurance agent from that company has been my next door neighbor for over 25 years! What I received from your agency was a total 180 degrees different from what I received from my old agency So again I appreciate, and commend Sullivan Insurance & Financial for the service that you provide. You have a class operation and the staff shows that everytime I walk into your office or call. It is not often these days that you can find real personal service - but your staff does personal service as second nature. GREAT JOB!! I would recommend this agency to ANYONE!
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