Tag: credit score

Homeowners insurance in Colorado is more expensive for some

Julie Campbell
cost of Homeowners Insurance

Individuals who have bad credit are paying more to cover their properties, regardless of other factors. For individuals who don’t have a good credit record, if they live in Colorado, it is more than likely that they are paying more in their homeowners insurance premiums than someone with a better credit history but who has a similar property. The results of a recent study have shown that there is a massive difference in insurance premiums based on credit scores. The study was conducted by InsuranceQuotes.com an showed that residents in…

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Insurance and Credit

S.Vagus
Insurance and credit

Credit is sometimes a controversial subject that few people really understand. For those familiar with the financial service industry, credit is a simple matter, but not everyone is familiar. For most, credit means nothing more than credit score, a seemingly arbitrary rating of a person’s financial value. Credit is somewhat more complex than that, however, especially when it comes to the insurance industry and a company’s willingness to take on financial risks. A credit score is a gauge of a person’s overall financial risk. A low credit score means that…

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Insurance and credit score make a troublesome mix

S.Vagus
Suze Orman Credit Score Insurance Woes

Credit score and its use by the insurance industry is not well understood by consumers Insurance and credit score are too things that often intermingle without much notice. Many insurance companies use credit score and other socio-economic information to price policies. This is somewhat common in some U.S. states, but it is also banned in much of the country due to the fickle nature of credit and the relatively loose understanding that consumers have regarding their own credit scores. Suze Orman, a prominent financial advisor, has been calling into question…

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Auto insurance premiums calculations seen as unfair

Health Insurance survey

Survey shows that drivers and insurers are not aligned in their concept of how rates are decided. According to the latest results of a Consumer Federation of America (CFA) study, auto insurance companies and policyholders have a very different opinion about what should and should not be used to calculate a driver’s premiums. There were 1,010 people who participated in the nonprofit consumer watchdog group’s survey. Most of the respondents said that they felt that their premiums should be calculated based on their actual driving history and behaviors. At the…

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Massachusetts insurers banned from using credit score to price auto insurance, according to new law

A new law has passed in Massachusetts that will ban insurers from pricing auto insurance based upon socioeconomic factors. Governor Deval Patrick signed the associated bill into law this week and believes that it will afford consumers with more protections against insurers constantly on the lookout for extra money. The ban was already enacted in the state some months ago but existed only as an administrative regulation. The bill’s passage comes after months of legislative struggle and conflict between consumer advocacy groups and insurance companies. Insurers opposing the measure claim…

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