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Does my credit score affect my insurance premiums?

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What does my credit rating have to do with purchasing insurance?

Everyone knows that credit scores are an evaluation of your payment history on a variety of consumer debt items like your home, credit cards, auto loans, etc.  Credit scores are also used for a variety of other purposes such finding a place to live, getting a cell phone, and, most recently, buying insurance.
Insurance companies have found a direct correlation between one’s credit score and likelihood of filing an insurance claim at some point in the future.  According to the actuarial tables and statistics the lower your credit score, the more likely you are to file a claim. So insurance companies are knowing using credit scores to generate an “insurance score” as part of the underwriting process.  Your insurance score plays a large role in determining the premiums charged by your homeowners and auto insurance companies.
Therefore a solid credit history can go a long way to decreasing your insurance premiums.  We recommend checking your credit score regularly and requesting that any discovered errors are immediately corrected.
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies—Equifax, Experian, and TransUnion—to provide you with a free copy of your credit report, at your request, once every 12 months. For more information, go to the Federal Trade Commission’s Web site on credit.
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10 Ways Arvada and Denver Metro Residents Can Save on Home Insuranc

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Over the past few weeks we have been providing tips and tricks for saving on auto insurance.   So this week we thought we would provide the top ways you can save money on your home insurance.

1. Ask for discounts

The quickest way to save money on your home insurance is to take advantage of the discounts available to you.   For example you may be able to add the following discounts to your policy:

  • Multi-policy discounts
  • Senior citizen discounts
  • Nonsmoker discounts
  • Claim-free discounts
  • Marital status discounts

Every insurance company offers different discounts, so we recommend working with an independent insurance agent to find out the what discounts are available to you.

2. Install security features

In 2009, burglary victims (in all structures, including homes) lost an estimated $4.6 billion to property damage and theft, according to the FBI.
Your insurance provider may offer discounts if you install safety features. For example, security features like deadbolts, fire extinguishers, and security alarms can add discounts anywhere from 5 percent to 20 percent.
3. Raise your deductible

Raising your deductible is one surefire way to lower your monthly homeowners insurance premium.  If you can afford to go slightly more out of pocket in the event of a claim, then you could potentially save another 10 to 15 percent.

4. Disaster-proof your property

Adding stronger weather-resistant features to your home like storm shutters or better roofing material can lead to dramatic savings on your insurance premiums, especially in areas that are prone to disasters like high winds or flooding.

5. Review your insurance policy

We recommend reviewing your insurance policy every year to ensure that you not only have the right insurance coverage, but that you also aren’t purchasing unnecessary coverage as well.

6. Double check your property limits

This may sound obvious, but if you paid $200,000 for your house, you don’t need to have $200,000 worth of coverage, because part of the purchase price included the lot your house sits on. You should carry insurance coverage equal to the cost of rebuilding the structure.

7. Inventory your possessions 

Understanding the right limit to use for your stuff can save you money on premiums and help you tremendously in the event of a claim.

Final Note
While it’s always nice to save money on your insurance, we don’t ever recommend purchasing liability and property limits  at lower amounts than what will sufficiently protect you and your family.   It’s never a good idea to put your personal assets in jeopardy to save $50 on your premiums.

If you would like to see where you can save more on your insurance premiums, or if you would like some insurance quotes on your home, please don’t hesitate to give us a call.

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New Technology that Helps You and Your Family Drive Safer

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Distracted driving is quickly becoming one of the most dangerous hazards on the road, especially among teenage drivers.   With auto insurance rates already high for these young drivers, it’s important that you try and avoid any potential insurance claims.

Chubb Insurance just released an article that highlights some of the available technologies to help your teen drivers avoid distracted driving and stay safe on the road.  Some of the apps actually put a lock on the texting function while driving, while others monitor the driving behavior.

Here are some of the apps listed within the article:

DriveMode: This is a free app for Android and Blackberry users that actually responds to all incoming texts with a short message that the recipient is driving and will respond to them soon.

Canary: Canary is an app for both the iPhone and Android that allows parents to monitor their child’s cell phone usage in real time while driving.  It records the times the cell phone is used and actually notifies parents if the child attempts to disable it.

TextBuster: Is a hardware device you actually install in your car the temporarily disables text messaging, email, and internet access while the driver is in the vehicle.  It does, however, allow the phone to still make and receive phone calls and use the GPS.

iGuardian Teen: This is an Android app that actually shows parents what their child is doing in the car.  It monitors driving speeds, distance traveled, and phone usage.
If you are in the Denver Metro or Arvada area and you are interest in how using these apps will help you qualify for insurance discounts, please give our office a call.

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