Bankruptcy, Poor Credit, and Insurance
I posted about credit and insurance yesterday, but am not sure I covered everything. I discussed why insurance can be more expensive and harder to obtain if your credit is poor. But after surfing around Bad Credit Blues, I noted some articles on helping people raise their credit, and I'd like to direct you to those a little more closely. You can take steps to repair your credit, and many of these steps will not cost money.
If you have had a bankruptcy, or if your credit has taken the plunge for some other reason, the Credit After Bankruptcy Article can help you begin to raise your credit score rather quickly...say in the timespan of months, and not years.
If you have debt problems, but have not actually filed bankruptcy yet, the bankruptcy alternatives article and free online analysis tool may help you avoid the more drastic steps.
Monday, January 29, 2007
Sunday, January 28, 2007
Insurance and Credit Score
Why does the insurance company need my credit report?
Insurance companies need to price right. If they price too low, then they will lose money. If they price to high, their competitors will sell more insurance. One factor that is taking on more importance in how an insurance company views you as a risk is your credit score.
Note: If you want legal ways to help build your credit score, visit Bad Credit Blues News.
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 are used to help insurers differentiate between lower and higher insurance risks and thus charge a premium equal to the risk they are assuming. Statistically, people who have a poor insurance score are more likely to file a claim.
Insurance scores do not include data on race or income because insurers do not collect this information from applicants for insurance.
Insurance companies need to price right. If they price too low, then they will lose money. If they price to high, their competitors will sell more insurance. One factor that is taking on more importance in how an insurance company views you as a risk is your credit score.
Note: If you want legal ways to help build your credit score, visit Bad Credit Blues News.
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 are used to help insurers differentiate between lower and higher insurance risks and thus charge a premium equal to the risk they are assuming. Statistically, people who have a poor insurance score are more likely to file a claim.
Insurance scores do not include data on race or income because insurers do not collect this information from applicants for insurance.
Wednesday, January 24, 2007
Health Insurance - Am I dreaming - Bush wants us to have it!
I must be dreaming, or maybe the President reads my blogs!
Bush addressed the huge problem of uninsured Americans and wants to change the tax code so that people are more aware of the cost insurance, and so that people can get liberal tax deductions for getting their families covered.
USA TODAY ARTICLE ON BUSH'S PLAN
Forty Seven Million Americans do not have health insurance! That is one out of 6 of us, and to me - living in an advanced society - this is unacceptable.
Bush addressed the huge problem of uninsured Americans and wants to change the tax code so that people are more aware of the cost insurance, and so that people can get liberal tax deductions for getting their families covered.
USA TODAY ARTICLE ON BUSH'S PLAN
Forty Seven Million Americans do not have health insurance! That is one out of 6 of us, and to me - living in an advanced society - this is unacceptable.
Monday, January 22, 2007
More HSA Health Savings Account Basics For Health Insurance
WHAT IS AN HSA or Health Savings Account?
I have divided this post up into three blogs. The first one is a basic outline so you understand the two parts of an HSA. The second part outlines some advantages to using a Health Savings Account Plan for your medical insurance. The last part tells you where to get more information!
Part 1: Is an HSA Health Insurance?
If you are shopping for health insurance, you have probably noticed a major medical insurance product called an HSA or Health Savings Account. An HSA is not actually insurance, but is an account that would be obtained with an HSA compatible Major Medical Insurance Plan. So we are talking about two parts of an HSA program here. One part is the Major Medical Health Insurance for your larger expenses, and the other is an investment, retirement, or savings account you can use on health purchases.
Part 2: Why would I want an HSA Account?
HSA plans make sense for many people. You can contribute, according to IRS guidelines to your HSA account. You will be able to deduct the allowable amount from your taxes. You can use this money to spend on any qualified purchases - some that might not even be covered by your major medical. However if you remain healthy, and do not need to take the money out - you keep it!
I have had clients who spent a considerable some on a lower deductible health insurance plan and then felt cheated because they had not used their plan very much. Well, I think that they were lucky to stay healthy! However, I can see their point. So I would be happy to give them the option to spend less on a much higher deductible health plan. That would also give them the security of knowing they will have health insurance in case of any major illness or injury! They can also choose to make contributions to their HSA, have a tax break, and know that if they don't have to spend the money, it will keep rolling over.
Part 3: Learn More About HSA's From Uncle Sam
I always like to go right to the Horse's...er Mouth ... when people ask me questions about taxes and/or the law. To learn more about HSA's you should go right to the Government.
Here is a link to the Dept. of the Treasury publication.
Thursday, January 18, 2007
Homeowners - Can you live without homeowners Insurance?
Can you own a home without homeowners insurance?
Well, it's interesting. Most states make it illegal to drive a car without car insurance, but do not have laws on the books forcing homeowners to insure their homes. If you have a loan on your home, most mortgage companies will require you to carry homeowners insurance. Since the mortgage company may actually carry the bulk of your investment on their books, they need to make sure it is protected.
However, if you own your home free of a mortgage, then you are not required to carry homeowner's insurance. However, things happen. Your pipes could burst, a small fire could get set in your kitchen, or your home could flood. I would always advise a homeowner to carry homeowners insurance on the bulk of their ivestment. Set the deductible at an amount you can afford to lose to keep your premiums affordable.
If you think your current homeowners insurance is too expensive, or if you have done without homeowners insurance, why not take five minutes to get an online quote or find a qualified local insurance agent?
Click Here To Start a Quick Free Online Quote.
Well, it's interesting. Most states make it illegal to drive a car without car insurance, but do not have laws on the books forcing homeowners to insure their homes. If you have a loan on your home, most mortgage companies will require you to carry homeowners insurance. Since the mortgage company may actually carry the bulk of your investment on their books, they need to make sure it is protected.
However, if you own your home free of a mortgage, then you are not required to carry homeowner's insurance. However, things happen. Your pipes could burst, a small fire could get set in your kitchen, or your home could flood. I would always advise a homeowner to carry homeowners insurance on the bulk of their ivestment. Set the deductible at an amount you can afford to lose to keep your premiums affordable.
If you think your current homeowners insurance is too expensive, or if you have done without homeowners insurance, why not take five minutes to get an online quote or find a qualified local insurance agent?
Click Here To Start a Quick Free Online Quote.
Thursday, January 11, 2007
Handling an Insurance Company Complaint or Question
I see this question posed all of the time. If you have a question or complaint about the way your insurance company handled your claim, what should you do? Even if you don't have a complaint, but are unsure about an insurance company or insurance agency, do you have anywhere to go to check up on them?
Well, every state in the US has an insurance regulatory body. This is usually an insurance commission or department of insurance.
HERE IS A PAGE WITH A LIST OF THE U.S. STATE INSURANCE REGULATORS.
If you do have a complaint with the way an insurance claim was handled, I think you should start with your insurance agent or the insurance company. Mistakes do get made, and sometimes a mistake can be traced back to miscoding a form in a clerical department. I have helped clients get claims approved and paid by just making a call to an insurance company and trying to find out if it was an error.
That said, bad stuff does happen too. If you have gone over the problem with your insurance company or insurance agent, and you still feel that they have violated the terms of your insurance policy, you should document what you've done, and communicate with your state insurance regulatory body. They are in charge of regulating the way that insurance companies do business in your state, and they will research the matter.
The last step that I would advise would be to actually contact a lawyer. They will cost you money, and while that may be money well spent, you need to gather information before you can make a decision on that. The state insurance commission will look at your case and determine if, in their judgement, the company has broken one of their rules.
If you'd like to look for a new insurance company or agent, I always suggest INSUREME because you can get an online quote and find a local agent. They also participate in the BBB Online Program, and have a clear privacy policy.
Well, every state in the US has an insurance regulatory body. This is usually an insurance commission or department of insurance.
HERE IS A PAGE WITH A LIST OF THE U.S. STATE INSURANCE REGULATORS.
If you do have a complaint with the way an insurance claim was handled, I think you should start with your insurance agent or the insurance company. Mistakes do get made, and sometimes a mistake can be traced back to miscoding a form in a clerical department. I have helped clients get claims approved and paid by just making a call to an insurance company and trying to find out if it was an error.
That said, bad stuff does happen too. If you have gone over the problem with your insurance company or insurance agent, and you still feel that they have violated the terms of your insurance policy, you should document what you've done, and communicate with your state insurance regulatory body. They are in charge of regulating the way that insurance companies do business in your state, and they will research the matter.
The last step that I would advise would be to actually contact a lawyer. They will cost you money, and while that may be money well spent, you need to gather information before you can make a decision on that. The state insurance commission will look at your case and determine if, in their judgement, the company has broken one of their rules.
If you'd like to look for a new insurance company or agent, I always suggest INSUREME because you can get an online quote and find a local agent. They also participate in the BBB Online Program, and have a clear privacy policy.
Tuesday, January 09, 2007
Are you chasing down group health insurance?
Can you make a group for group health insurance out of thin air?
I read a lot of forums aimed at small business people and professionals, and I see a common topic arise. One member wants to try to get other members to form a small group or association and negotiate a group plan for these people. On the surface, this sounds like a noble idea, but I do see some problems for trying to make a group out of a 'bunch' of people who need health insurance.
The first problem is that these people are not really employed by the same company, so it wouldn't be a true group. Some insurers go so far as to eliminate any 1099 employees from the true group, and some insurers will accept this. OK, so that's the first hurdle. You don't really have a group, and you probably won't get enough people to really negotiate on price. You would probably need thousands.
The problems with group health insurance for small groups
I've stated this before, but let me do it again. Group health insurance is not cheaper than individual health plans for most people. It might seem cheaper because your employer is picking up a large percentage of the price tag, but it really isn't when you add up the employer contribution plus the employee contribution. That's why people complain that their COBRA payments are so high! You aren't paying for COBRA. You are paying the total price tag for health insurance.
Group health is often very high because the insurer must take employees without underwriting. Of course, they don't do this as a service, but they do pass the costs along. With individual health insurance, and insurer gets to underwrite, choose who they will insure according to their guidelines, and take the people who they will insure, and exclusde pre existing conditions for a certain amount of time. Of course, these premiums are actually cheaper.
But group health insurance seems better!
If you really compare apples to apples, it works out. Most people want to spend far less out of their own pockets for the total bill than the amount employers fork over. I've spoken to small business owners who were paying 800 to 1000 for employee medical insurance. Many families would like to limit their total price tag to half of that or less. I cannot understand why I have to offer much higher deductibles or greater coinsurance amounts to fit a plan within their budgets.
If you are healthy, why not quote individual health plans? You may be pleasantly surprised. If you are not healthy, a group plan will certainly seem more attractive, but you do have other alternativies. All states have some fallback plan for high risk residents. In Texas, we have a risk pool. Other states have companies which offer guaranteed acceptance health plans. Of course, these plans are not free, and they are usually expensive. But group health will be expensive anyway.
If you cannot afford to pay for health insurance, many counties and states have health plans that they underwrite for lower income people. To work with country programs, and especially low cost insurance for children, you do not have to be destitute - and in fact, many middle income people qualify!
Find a Local Health Insurance Agent or Get an Online Quote
Friday, January 05, 2007
Medicare Beneficiaries - It's January and things are delayed on the Medicare Part D and Medicare Advantage Front - Again
Well, it's January now, so we have the usually backlog of enrollees who signed up for Part D or MA - Part D plans who have not received governement confirmation - and who have also not received their new ID cards. This shouldn't be old news, and should have been expected, but I think it's very frustrating the seniors shouldn't have the security of a speedy delivery of their information packets and ID cards.
I'm sure that agents are doing all they can to expidite the process, but as usual, the process is behind schedule. If you did sign up for a new prescriptin plan, or a Medicare Advantage Plan (MA PD) last month, and you don't have your packet, your copy of the application should serve as proof in case you need to get medication or medical care.
If you have a problem, contact your agent or your insurance company, and they should help you.
I'm sure that agents are doing all they can to expidite the process, but as usual, the process is behind schedule. If you did sign up for a new prescriptin plan, or a Medicare Advantage Plan (MA PD) last month, and you don't have your packet, your copy of the application should serve as proof in case you need to get medication or medical care.
If you have a problem, contact your agent or your insurance company, and they should help you.
Thursday, January 04, 2007
Why use an insurance agent?
You might think it doesn't matter where you buy insurance, but a quick decision can cost you lots of money. The money may be in premium, or it may be in having coverage that's not really good for you and your family.
Insurance can be complicated. You have coverage limits and deductibles with car insurance. You have out of pocket maximums and coinsurance with health insurance. You have different options to select underwriting severity for life insurance. Selecting a reasonable choice for your situation will be aided by an experienced local agent who understands your situation and the current policies available.
Agents can also come in different flavors:
Captive Agents: Can only write with one company, or may have the option to use other companies only if their primary company declines a customer.
Independant Agents or Brokers: Can write with any company they are legally appointed with in states they are licensed to.
Direct Agents: Can only do business over the phone under the umbrella of a large company. They usually write for one company, or from a pre-selected menu of companies.
Of course, I like indendant agents!
They are usually local and have community ties, and they know the options that are available to you. They should listen to you, qualify you for a particular situation, and come up with one or two best choices.
Find a Local Agent Through INSUREME - They are BBB Approved and have a clearly stated privacy policy. Thanks!
Insurance can be complicated. You have coverage limits and deductibles with car insurance. You have out of pocket maximums and coinsurance with health insurance. You have different options to select underwriting severity for life insurance. Selecting a reasonable choice for your situation will be aided by an experienced local agent who understands your situation and the current policies available.
Agents can also come in different flavors:
Captive Agents: Can only write with one company, or may have the option to use other companies only if their primary company declines a customer.
Independant Agents or Brokers: Can write with any company they are legally appointed with in states they are licensed to.
Direct Agents: Can only do business over the phone under the umbrella of a large company. They usually write for one company, or from a pre-selected menu of companies.
Of course, I like indendant agents!
They are usually local and have community ties, and they know the options that are available to you. They should listen to you, qualify you for a particular situation, and come up with one or two best choices.
Find a Local Agent Through INSUREME - They are BBB Approved and have a clearly stated privacy policy. Thanks!
Tuesday, December 26, 2006
Free MIB - Medical Information Bureau Report - What is the MIB?
What is the MIB and what can I do about it?
If you've applied for health insurance you've probably heard about the MIB or Medical Information Bureau. When you apply, they check your health history against MIB records fairly automatically. If you've had trouble getting accepted for health or life insurance or disability insurance, you may get a notice that you've been declined or need an APS (attending physician statement) because of information on the MIB.
If this sounds like a credit report, it sounds like that to me too! The same good advice to check your credit report for errors, would apply to the MIB. Here's how you can check your MIB information for free.
Here's the About Me From the Official MIB Website:
MIB Group, Inc. ("MIB") is an association of over 500 U.S. and Canadian life insurance companies providing information and database management services to the financial services industry. Organized in 1902, MIB's core fraud protection services protect insurers, policyholders and applicants from attempts to conceal or omit information material to the sound and equitable underwriting of life, health, disability, and long term care insurance. Fair pricing of insurance products is largely dependent on accurate "risk assessment", "risk classification", and "risk selection". A determination of these factors begins with the assurance of accurate health information supplied on the insurance application concerning the proposed insured.
If you've applied for health insurance you've probably heard about the MIB or Medical Information Bureau. When you apply, they check your health history against MIB records fairly automatically. If you've had trouble getting accepted for health or life insurance or disability insurance, you may get a notice that you've been declined or need an APS (attending physician statement) because of information on the MIB.
If this sounds like a credit report, it sounds like that to me too! The same good advice to check your credit report for errors, would apply to the MIB. Here's how you can check your MIB information for free.
Here's the About Me From the Official MIB Website:
MIB Group, Inc. ("MIB") is an association of over 500 U.S. and Canadian life insurance companies providing information and database management services to the financial services industry. Organized in 1902, MIB's core fraud protection services protect insurers, policyholders and applicants from attempts to conceal or omit information material to the sound and equitable underwriting of life, health, disability, and long term care insurance. Fair pricing of insurance products is largely dependent on accurate "risk assessment", "risk classification", and "risk selection". A determination of these factors begins with the assurance of accurate health information supplied on the insurance application concerning the proposed insured.
Thursday, December 21, 2006
InsureMe Shut Down Insurance Clients Blog
InsureMe Insurance Quoting Service is still alive and well. They are one of my favorite companies to work with because they provide a great free service to consumers. They provide free online quotes for car insurance, homeowners insurance, health insurance, life insurance, and long term care insurance! They are also approved for the Better Business Bureau Online reliability program, and they have a well stated privacy policy. When you are looking for online insurance quotes, these are great things to look for.
They also maintain an active community with blogs and comments for insurance agents and affiliates of their programs. They give great support. I really like this company. However they decided that nobody wants to read about insurance. Of course, I don't agree. I can see that my posts are getting read, searched for, and sometimes responded to. Oh well, Bye Bye InsureMe Insurance Blog and Hello Research Insurance!
InsureMe is still very active in providing free quotes for consumers and contacts for insurance agents!
They also maintain an active community with blogs and comments for insurance agents and affiliates of their programs. They give great support. I really like this company. However they decided that nobody wants to read about insurance. Of course, I don't agree. I can see that my posts are getting read, searched for, and sometimes responded to. Oh well, Bye Bye InsureMe Insurance Blog and Hello Research Insurance!
InsureMe is still very active in providing free quotes for consumers and contacts for insurance agents!
Saturday, December 16, 2006
Insurance Scam Fraud Protection
Auto Insurance Scam Fraud Protection and Warning
This is from an about.com article. Here is the Link to The About.COM article on insurance scam.
Basically the article mentions the very good point that insurance fraud began when insurance began. We've all heard about different stories...unlicensed health insurers that were so good they even deceived licensed agents into marketing products, fires that get set on unsold good, and now this one....criminals staging car accidents with you so it appears to be your fault ... and it was actually set up .. so they can collect from your car insurance company!
Read the article so you know how to protect yourself.
FOR ONLINE AUTO INSURANCE QUOTES USE A COMPANY THAT PARTICIPATES IN THE BBB ONLINE PROGRAM, AND THAT HAS A STATED PRIVACY POLICY. CLICK HERE FOR INSUREME.
Friday, December 15, 2006
Insurance Speak - Helpful Terms Glossary of Insurance Terms
HomeTown Quotes Posts a helpful glossary of insurance terms. So if you're not sure what a Binder or an Equity Index is, go check out this site. Sometimes just knowing the meaning of unfamiliar terms can help you make the best insurance decision!
INSURANCE TERM GLOSSARY HERE
Home Town Quotes
INSURANCE TERM GLOSSARY HERE
Home Town Quotes
Wednesday, December 13, 2006
Is Small Business Group Health Too Expensive?
If you're running a small business with 2 to 10 employees, you may have a very workable solution to expensive group health insurance premiums. Look, group insurance, especially with small groups, can be a very risky and expensive deal. They have to take the whole group without exclusions, so if one employee has a problem like diabetes or a heart attack, it's like everybody has a problem!
The solution may be simple. Use individually underwritten health insurance for your healthy employees. You'll be amazed at how much cheaper the premiums are! Then take the one or two employees with health problems and use your state's high risk pool to insure them.
The employee's will have to pay these premiums, but you can take your own savings and give your employees a raise to cover all, or a portion, of their expense. This is the new trend in small group health insurance coverage, it would be in your best interest to consider it.
FIND A LOCAL HEALTH INSURANCE OR RUN ONLINE HEALTH INSURANCE QUOTES! One quick form can save you hundreds, or even thousands, of dollars!
The solution may be simple. Use individually underwritten health insurance for your healthy employees. You'll be amazed at how much cheaper the premiums are! Then take the one or two employees with health problems and use your state's high risk pool to insure them.
The employee's will have to pay these premiums, but you can take your own savings and give your employees a raise to cover all, or a portion, of their expense. This is the new trend in small group health insurance coverage, it would be in your best interest to consider it.
FIND A LOCAL HEALTH INSURANCE OR RUN ONLINE HEALTH INSURANCE QUOTES! One quick form can save you hundreds, or even thousands, of dollars!
Is Small Business Group Health Too Expensive?
If you're running a small business with 2 to 10 employees, you may have a very workable solution to expensive group health insurance premiums. Look, group insurance, especially with small groups, can be a very risky and expensive deal. They have to take the whole group without exclusions, so if one employee has a problem like diabetes or a heart attack, it's like everybody has a problem!
The solution may be simple. Use individually underwritten health insurance for your healthy employees. You'll be amazed at how much cheaper the premiums are! Then take the one or two employees with health problems and use your state's high risk pool to insure them.
The employee's will have to pay these premiums, but you can take your own savings and give your employees a raise to cover all, or a portion, of their expense. This is the new trend in small group health insurance coverage, it would be in your best interest to consider it.
FIND A LOCAL HEALTH INSURANCE OR RUN ONLINE HEALTH INSURANCE QUOTES! One quick form can save you hundreds, or even thousands, of dollars!
The solution may be simple. Use individually underwritten health insurance for your healthy employees. You'll be amazed at how much cheaper the premiums are! Then take the one or two employees with health problems and use your state's high risk pool to insure them.
The employee's will have to pay these premiums, but you can take your own savings and give your employees a raise to cover all, or a portion, of their expense. This is the new trend in small group health insurance coverage, it would be in your best interest to consider it.
FIND A LOCAL HEALTH INSURANCE OR RUN ONLINE HEALTH INSURANCE QUOTES! One quick form can save you hundreds, or even thousands, of dollars!
Thursday, December 07, 2006
New Health Insurance Solution
hey - This is something I've known for awhile. You can often get cheaper health insurance on an individual plan than on a group plan. Why? Well, the insurance company will individually underwrite the health insurance on the plans you own yourselves, while group plans are forced to take everybody!
I found a book on this on Amazon. This is the New Health Insurance Solution!
I found a book on this on Amazon. This is the New Health Insurance Solution!
Tuesday, December 05, 2006
Free Insurance Quotes Save Consumers Money These Days
Why Compare Insurance?
I've written about the power of comparing insurance before, but with the holiday budget strain coming up, I think it's time to remind everybody about a couple of important things to consider about buying car insurance or health insurance or whatever.....
24/7 Quote US - Free Online Insurance Quotes and Tips
Of course, auto insurance rates drivers on their record, but insurance companies also look at how cars are used, their owner's work and home zip codes, and even the owner's credit scores! Different companies rate differently.
The same goes for health and life insurance. Of course, you'd expect to have your health considered, but did you know that your credit may also be considered?
Anyway, the point is, different companies use different guidelines, and it would serve you well to check into competitive quotes. You can fill out a five minute form and then get quotes from a minimum of three insurance companies. The form makes these accurate. I.e. If it's car insurance, then the company will need to know where you live and what kind of car you drive, etc. If it's health insurance the company will need to know if you smoke, if you've been hospitalized, etc.
24/7 Quote US - Free Online Insurance Quotes and Tips
Good Luck!
Wednesday, November 29, 2006
Cheaper Car Insurance from a safer Car - It's a win win!
Did you know that car insurance is cheaper for safer cars? The National Highway Institute is a good way to find out how safe the new car that you were considering is! This is a double bonus. You get a safer car, and you get cheaper car insurance!
Before you buy a new car, and get car insurance shock on top of sticker shock, why not running a quick online car insurance quote?
Use the form on 24/7 Quote US to run a quick quote. It takes about 5 minutes, and can pay off big time! Click here for 24/7 Quote Us and the InsureMe Quote Box!
Before you buy a new car, and get car insurance shock on top of sticker shock, why not running a quick online car insurance quote?
Use the form on 24/7 Quote US to run a quick quote. It takes about 5 minutes, and can pay off big time! Click here for 24/7 Quote Us and the InsureMe Quote Box!
Saturday, November 25, 2006
Are You Paying More for Insurance Because of Your Credit Score?
This is a subject that's coming up more and more - people with lower credit scores are actually paying more for all sorts of insurance, and also are likely to suffer insurance declines than people with higher credit scores.
Make sure you check out your credit scores with free reports that are offered online. YOu may have errors on your report. Here is one source of a free credit report with offers for more extensive credit history. Hey - it's your own information, and you should have access to it!
You can also find more insurance artles at 24/7QuoteUS
Are You Paying More for Insurance Because of Your Credit Score?
Posted: 09-11-2006 | Views: 36
Author: Stephen Snyder
You've probably heard that insurance companies use credit scores to determine whether to even accept you, and if they do accept you, to determine what you'll pay for your premium.
Well, that's almost right.
Insurance companies don't use FICO credit scores. Insurance companies often use credit-based, "insurance scores," to determine if you are eligible for auto or homeowner's insurance, and how much you'll pay.
The scores that insurance companies use are a little different than the scores the lenders use. However, they are similar in that they look at a lot of the same information as the credit scores used to qualify you for a mortgage or credit card.
Just like a credit score, information from your credit reports is summarized into what's called an insurance credit score. Insurance companies use the insurance credit score to draw their own conclusions about you. Regardless of these small differences, your credit score is generally going to be a good indicator of your insurance score.
Each state has its own unique take on insurance scoring. Some states allow insurance companies to use insurance scores to make a decision to grant insurance coverage or not. Other states prohibit it. Still, most states allow some version of a credit score to determine your insurance premium.
To a lot of people, allowing insurance companies to use credit information seems unfair.
For example, a bankrupt person with a stellar driving record could see their insurance rates go up drastically just because the bankruptcy appears on their credit reports and lowers their credit scores and insurance credit scores.
So what's the difference between the scores lenders use and the scores insurance companies use?
Insurance companies do not depend on scores to predict whether or not you'll make your insurance payments on time (like a lender does). They are more interested in whether or not you will be a profitable insurance customer.
And what makes you a profitable insurance customer? You're profitable by paying your premiums and not filing any claims.
You can also be a profitable insurance customer by paying your premiums and not filing any large dollar claims. And that's exactly what they use insurance credit scores to predict.
Lender credit scores are designed to predict whether or not a late payment incident will occur. Insurance credit scores are designed to predict whether or not you will be a profitable customer.
Clear as mud, right?
The bottom line is that the insurance companies say they have been able to prove, time and time again, that there is a strong statistical relationship between your credit management and your likelihood of filing insurance claims.
In addition, insurance companies claim to be able to show that consumers who have lower insurance credit scores cost them more in claims than consumers who have higher insurance credit scores.
What they haven't been able to prove is why there is a connection between credit scores and increased incidences of claims. This is where much of the controversy stems from.
Regardless, insurance companies have a right to use credit information to evaluate your application for insurance. It's called a permissible purpose and it's clearly spelled out in Section 604 of the Fair Credit Reporting Act. It's the law.
Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that provides free bankruptcy information and recovery steps. Stephen also writes a free weekly newsletter on bankruptcy recovery.
Make sure you check out your credit scores with free reports that are offered online. YOu may have errors on your report. Here is one source of a free credit report with offers for more extensive credit history. Hey - it's your own information, and you should have access to it!
You can also find more insurance artles at 24/7QuoteUS
Are You Paying More for Insurance Because of Your Credit Score?
Posted: 09-11-2006 | Views: 36
Author: Stephen Snyder
You've probably heard that insurance companies use credit scores to determine whether to even accept you, and if they do accept you, to determine what you'll pay for your premium.
Well, that's almost right.
Insurance companies don't use FICO credit scores. Insurance companies often use credit-based, "insurance scores," to determine if you are eligible for auto or homeowner's insurance, and how much you'll pay.
The scores that insurance companies use are a little different than the scores the lenders use. However, they are similar in that they look at a lot of the same information as the credit scores used to qualify you for a mortgage or credit card.
Just like a credit score, information from your credit reports is summarized into what's called an insurance credit score. Insurance companies use the insurance credit score to draw their own conclusions about you. Regardless of these small differences, your credit score is generally going to be a good indicator of your insurance score.
Each state has its own unique take on insurance scoring. Some states allow insurance companies to use insurance scores to make a decision to grant insurance coverage or not. Other states prohibit it. Still, most states allow some version of a credit score to determine your insurance premium.
To a lot of people, allowing insurance companies to use credit information seems unfair.
For example, a bankrupt person with a stellar driving record could see their insurance rates go up drastically just because the bankruptcy appears on their credit reports and lowers their credit scores and insurance credit scores.
So what's the difference between the scores lenders use and the scores insurance companies use?
Insurance companies do not depend on scores to predict whether or not you'll make your insurance payments on time (like a lender does). They are more interested in whether or not you will be a profitable insurance customer.
And what makes you a profitable insurance customer? You're profitable by paying your premiums and not filing any claims.
You can also be a profitable insurance customer by paying your premiums and not filing any large dollar claims. And that's exactly what they use insurance credit scores to predict.
Lender credit scores are designed to predict whether or not a late payment incident will occur. Insurance credit scores are designed to predict whether or not you will be a profitable customer.
Clear as mud, right?
The bottom line is that the insurance companies say they have been able to prove, time and time again, that there is a strong statistical relationship between your credit management and your likelihood of filing insurance claims.
In addition, insurance companies claim to be able to show that consumers who have lower insurance credit scores cost them more in claims than consumers who have higher insurance credit scores.
What they haven't been able to prove is why there is a connection between credit scores and increased incidences of claims. This is where much of the controversy stems from.
Regardless, insurance companies have a right to use credit information to evaluate your application for insurance. It's called a permissible purpose and it's clearly spelled out in Section 604 of the Fair Credit Reporting Act. It's the law.
Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that provides free bankruptcy information and recovery steps. Stephen also writes a free weekly newsletter on bankruptcy recovery.
Friday, November 17, 2006
International Travel Insurance for US and Non US citizens
If you are a US citizen planning an overseas trip, your medical insurance may not cover you in foreign lands. If you are a non US resident, planning a trip to America you may be in for a surprise when you land here unless you have adequate medical coverage.
Overseas Travel Medical Plan - Click Here
Why do you need the Overseas Travel Medical Plan?
Today, more and more people are traveling outside of their home country, either for business, recreation or personal reasons. Frequently, domestic health insurance does not provide coverage for overseas medical emergencies, and international travelers are unable to obtain this type of protection after they are outside of their home country.
Furthermore, most traditional health insurance does not provide coverage for expenses for an emergency medical evacuation, medical reunion, return of mortal remains, trip interruption or loss of checked luggage.
Overseas Travel Medical Plan - Click Here
Comprehensive protection for:
* U.S. citizens traveling abroad
* Non U.S. citizens traveling to the U.S.
* Hospital & Medical Expenses
* 24-Hour Medical Emergency Services
* Trip Cancellation
* Lost Luggage
* Emergency Dental
* Emergency Evacuation
* Accidental Death & Dismemberment
* Return of Minor Children
Overseas Travel Medical Plan - Click Here
Overseas Travel Medical Plan - Click Here
Why do you need the Overseas Travel Medical Plan?
Today, more and more people are traveling outside of their home country, either for business, recreation or personal reasons. Frequently, domestic health insurance does not provide coverage for overseas medical emergencies, and international travelers are unable to obtain this type of protection after they are outside of their home country.
Furthermore, most traditional health insurance does not provide coverage for expenses for an emergency medical evacuation, medical reunion, return of mortal remains, trip interruption or loss of checked luggage.
Overseas Travel Medical Plan - Click Here
Comprehensive protection for:
* U.S. citizens traveling abroad
* Non U.S. citizens traveling to the U.S.
* Hospital & Medical Expenses
* 24-Hour Medical Emergency Services
* Trip Cancellation
* Lost Luggage
* Emergency Dental
* Emergency Evacuation
* Accidental Death & Dismemberment
* Return of Minor Children
Overseas Travel Medical Plan - Click Here
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