2007-11-17 01:41:09 · 10 answers · asked by minnesota girl 2 in Business & Finance ➔ Credit
Credit reports are like report cards when we were in school only instead of showing how good/bad we are doing in our studies they show how good/bad we are doing in managing our debt.
In today's world this is a good indicator of how people handle their responsibilities including insurance.
2007-11-17 01:59:22 · answer #1 · answered by ? 7 · 2⤊ 0⤋
1
2016-09-25 00:40:13 · answer #2 · answered by ? 3 · 0⤊ 0⤋
There is a direct correlation between an individual's credit history and the odds that they will file an insurance claim (auto and home only). Responsibility in one area of a person's life almost always carries over, and vice versa. Using credit scoring allows insurance companies to fairly assign premiums based on expected losses; those who are less responsible pay more.
2007-11-19 18:23:55 · answer #3 · answered by toby 2 · 0⤊ 0⤋
Your credit score represents your ability to pay bills on time. If you can't pay on time, you are considered a more risky investment.
Insurance companies are actually investing in you. They are gambling that you'll not get into an accident, die or get sick, and that you'll pay your bills. That's how insurance works.
2007-11-17 01:46:47 · answer #4 · answered by Deirdre H 7 · 0⤊ 0⤋
Insurance is based on paying premiums.
An excellent credit score reflects your willingness/ability to make payments in a timely manner.
A substandard credit score reflects your willingness/ability to make payments in an untimely manner.
2007-11-17 02:18:50 · answer #5 · answered by !!! 7 · 0⤊ 1⤋
It's all just a scam to get some to pay more. Regardless of my CS, if I wanted 6 months of auto ins. and got the money to pay it upfront, why should my cost be doubled ? Want to make payments, then thats when your CS come into play.
2007-11-17 03:05:08 · answer #6 · answered by Anonymous · 0⤊ 2⤋
Because they risk loosing about 85 cents if they send you a bill, w/ the paper, postage, etc and you don't pay it. So they need to make sure you have good credit, because they can't be in business mailing out bills that people don't pay.
2007-11-17 01:44:29 · answer #7 · answered by Anonymous · 0⤊ 2⤋
A low score from not paying your bills/debt is not good. If you have a 0 score from not borrowing money you can still get an apartment and a job and home loan and Insurance.
Debt free is the way to be!
Freeeeeedooooooom! YEA, BABY!
2007-11-17 02:15:06 · answer #8 · answered by heybulldog 5 · 0⤊ 4⤋
They underwriter is looking for adverse selection.
2007-11-17 03:06:06 · answer #9 · answered by Anonymous · 0⤊ 0⤋
because it's a indicator on how you run your life
2007-11-17 01:46:15 · answer #10 · answered by Anonymous · 1⤊ 0⤋