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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
Couldn't believe the difference - my past agent never discussed my coverage the way this agent did! I can't believe how bad my coverage was. They took care of everything & even cancelled my old policies. The new cost was even less than I was paying for for less coverage! I would highly recommend everyone have a review with this agency - they covered ALL the discounts and coverage options, and even asked me what I wanted my insurance to do - no other agent has ever asked me that! They didn't push me towards one company or another - they just competitively quoted with all their insurers. I would recommend everyone have a review with this agency and find out just want you are missing out on.
billw
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