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Summer 2011  

An Annual Homeowners Insurance Checkup Is the Best Medicine for Your Financial Health 

Every year take the time to ask yourself this basic question: How much homeowners insurance do I need?

The answer is that you need enough insurance to cover the following: 

  1. The structure of your home.

  2. Your personal possessions.

  3. The cost of additional living expenses if your home is damaged and you have to live elsewhere during repairs.

  4. Your liability to others.

The structure You need enough insurance to cover the cost of rebuilding your home at current construction costs. Do not include the cost of the land. And do not base your rebuilding costs on the price you paid for your home. The cost of rebuilding could be more or less than the price you paid or could sell it for today.

Some banks require you to buy homeowners insurance to cover the amount of your mortgage. If the limit of your insurance policy is based on your mortgage, make sure it is enough to cover the cost of rebuilding. (If your mortgage is paid off, do not cancel your homeowners policy—it is the best way to protects your investment in your home.)

For a quick estimate of the amount of insurance you need, multiply the total square footage of your home by local building costs per square foot. To find out construction costs in your community, call your local real estate agent, builders association or insurance agent.

Factors that will determine the cost of rebuilding your home: 

  • Local construction costs

  • The square footage of the structure

  • The type of exterior wall construction–frame, masonry (brick or stone) or veneer

  • The style of the house (ranch, colonial)

  • The number of bathrooms and other rooms

  • The type of roof and materials used

  • Other structures on the premises such as garages, sheds

  • Fireplaces, exterior trim and other special features like arched windows

  • Whether the house, or parts of it like the kitchen, was custom built

  • Improvements to your home, such as adding a second bathroom, enlarging the kitchen or other additions that have added value to your home 

Standard homeowners policies provide coverage for disasters such as damage due to fire, lightning, hail, explosions and theft. They do not cover floods, earthquakes or damage caused by lack of routine maintenance.

Flood insurance is available from the National Flood Insurance Program (NFIP) and from some private insurers. Earthquake coverage is available from private insurance companies or, in California, also through the California Earthquake Authority.

Replacement cost policies Most policies cover replacement cost for damage to the structure. A replacement cost policy pays for the repair or replacement of damaged property with materials of similar kind and quality. There is no deduction for depreciation—the decrease in value due to age, wear and tear, and other factors.

If you purchase a flood insurance policy, coverage for the structure is available on a replacement cost basis.

Guaranteed or extended replacement cost coverage After a major hurricane or a tornado, building materials and construction workers are often in great demand. This can push rebuilding costs above homeowners policy limits, leaving you without enough money to cover the bill. To protect against such a situation, you can buy a policy that pays more than the policy limits.

An extended replacement cost policy will pay an extra 20 percent or more above the limits, depending on the insurance company. A guaranteed replacement cost policy will pay whatever it costs to rebuild your home as it was before the fire or other disaster.

Building codes Building codes are updated periodically and may have changed significantly since your home was built. If your home is badly damaged, you may be required to rebuild your home to meet new building codes. Generally, homeowners insurance policies (even a guaranteed replacement cost policy) will not pay for the extra expense of rebuilding to code. Many insurance companies offer an Ordinance or Law endorsement that pays a specified amount toward these costs. (An endorsement is a form attached to an insurance policy that changes what the policy covers.)

Inflation guard Consider adding an inflation guard clause to your policy. This automatically adjusts the dwelling limit when you renew your policy to reflect current construction costs in your area.

Older homes If you own an older home, you may have to buy a modified replacement cost policy rather than a standard replacement cost policy. This means that instead of repairing or replacing features typical of older homes, like plaster walls and wooden floors, with similar materials, the policy will pay for repairs using the standard building materials and construction techniques in use today.

Insurance companies differ greatly in how they insure older homes. Some will not insure older homes for the replacement cost because of the expense of recreating special features like wall and ceiling moldings and carvings. Other companies will insure older homes for the replacement cost as long as the dwelling is in good condition.

If you cannot insure your home for the replacement cost or choose not to do so—in some cases, the cost of replacing a large old home is so high that you might not want to replace it with a house of the same size—make sure the limits of the policy are high enough to provide you with a house of acceptable size and quality. 

Your personal possessions Most homeowners insurance policies provide coverage for your personal possessions for approximately 50 percent to 70 percent of the amount of insurance you have on the structure or “dwelling” of your home. The limits of the policy typically appear on the Declarations Page under Section I, Coverages, A. Dwelling.

To determine if this is enough coverage, you need to conduct a home inventory. This is a detailed list of everything you own and information related to the cost to replace these items if they were stolen or destroyed by a disaster such as a fire (for more information see How do I take a home inventory and why? and free, web-based home inventory software is available at www.KnowYourStuff.org). Be sure to review you inventory with your agent and if you need more coverage, consider higher limits for your personal possessions.

Replacement Cost or Actual Cash Value You can either insure your belongings for their actual cash value, which pays to replace your home or possessions minus a deduction for depreciation up to the limit of your policy. Or you can opt for replacement cost, which pays the actual cost of replacing your home or possessions (no deduction for depreciation) up to the limit of your policy.

Suppose, for example, a fire destroys a 10-year-old TV set in your living room. If you have a replacement cost policy for the contents of your home, the insurance company will pay to replace the TV set with a new one. If you have an actual cash value policy, it will pay only a percentage of the cost of a new TV set because the TV has been used for 10 years and is worth a lot less than its original cost. Some replacement cost policies actually replace the item and deliver it to you.

Generally, the price of replacement cost coverage is about 10 percent more than that of actual cash value. If you need a flood insurance policy for your belongings, it is only available on an actual cash value basis.

Insuring expensive items with floaters/endorsements There may be limits on how much coverage you get for expensive items such as jewelry, silverware and furs. Generally, there is a limit on jewelry for $1,000 to $2,000. You should ask your agent or look it up in your policy. This information is in Section I, Personal Property, Special Limits of Liability. Insurance companies may also place a limit on what they will pay for computers.

If the limits are too low, consider buying a special personal property floater or an endorsement. These allow you to insure these items individually or as a collection. With floaters and endorsements, there is no deductible. You are charged a premium based on what the item (or collection) is, its dollar value and where you live.

You can determine the value by providing your agent with a recent receipt or getting the item or collection appraised. 

Additional living expenses after a disaster Additional living expenses (ALE) is a very important feature of a standard homeowners insurance policy. It pays the additional costs of temporarily living away from your home if you cannot stay in it due to a fire, severe storm or other insured disaster. ALE covers hotel bills, restaurant meals and other living expenses incurred while your home is being rebuilt.

Coverage for additional living expenses differs from company to company. Many policies provide coverage for about 20 percent of the insurance on your house. Some companies will even sell you a policy that provides you with an unlimited amount of loss of use coverage, for a limited amount of time.

If you rent out part of your house, this coverage also reimburses you for the rent that you would have collected from your tenant if your home had not been destroyed.

You should talk to your agent or company to make sure you know exactly how much ALE coverage you have and how long the coverage will be in effect. In most cases, you can increase this coverage for an additional premium. 

Liability to others This part of your policy covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by pets. It pays for both the cost of defending you in court and for any damages a court rules you must pay.

Generally, most homeowners insurance policies provide a minimum of $100,000 worth of liability insurance, but higher amounts are available. Increasingly, it is recommended that homeowners consider purchasing at least $300,000 to $500,000 worth of coverage of liability protection.

Umbrella or Excess Liability Make sure you have enough liability insurance to protect your assets. If you own property and or have investments and savings that are worth more than the liability limits in your policy, you may consider purchasing an excess liability or umbrella policy.

Umbrella or excess liability policies provide extra coverage. They start to pay after you have used up the liability insurance in your underlying homeowners (or auto) policy. An umbrella policy is not part of your homeowners policy. You have to purchase it separately. In addition to providing a higher dollar amount, these policies offer broader coverage. You are covered for libel, slander, and invasion of privacy, which are not covered under standard homeowners or auto policies.

The cost of an umbrella policy depends on how much underlying insurance you have and the kind of risk you represent. The greater the underlying liability coverage, the cheaper the policy. This is because you would be the less likely to need the additional insurance. Most companies will require a minimum of $300,000 in existing liability insurance on your home and your car, if you own one.

“Homeowners policies provide a wide variety of coverages; far more than five or 10 years ago,” said Worters. “That’s why it’s important to review your policy with your insurer annually to make sure you take advantage of all the coverages available to you.”

 Seven Things You Might Not Know about Car Insurance

Understanding the basics of car insurance can be difficult enough, let alone understanding the lesser-known intricacies involved with the guidelines, policies and procedures of today's insurance providers. Below, we've outlined some important, yet oftentimes obscure, insurance facts, so you're "in-the-know" when you're on-the-go. 

Fact #1: Your credit impacts your insurance rates 

Believe it or not, your credit may impact your insurance rates. Insurance providers have found that certain credit characteristics for an individual are useful to predict of how likely it is that the individual will have an insurance claim. These characteristics are not the same ones that a bank uses to measure lending risk, but rather, insurers may use credit-based insurance scores in conjunction with other variables to assess the likelihood of claims submitted. These variables may include age, driving record, claims history, place of residence, the type of car and the average miles driven, among others. As a general best practice, do what you can to improve your credit, be sure to monitor your credit report on a regular basis, and contact the credit bureau to clear up any errors. 

Fact #2: Brand loyalty can cost you 

If your mindset about automobile insurance is "set it and forget it," you might want to reconsider. Years ago, insurance companies evaluated a short list of factors when calculating your premiums. Today, that list has grown to a confusing labyrinth of criteria causing insurance rates to differ dramatically from provider to provider. 

Instead of allowing your policy to automatically renew, comparison shop once a year to ensure you're getting the best auto insurance rates. Some companies provide policies direct to consumers, while others sell policies through agents or brokers. An easy place to start is by getting auto insurance quotes online, which could save you money. If you're worried that lower rates mean less coverage or poor service, don't be. Today, there are plenty of insurance companies that offer affordable premiums, well-rounded coverage and excellent customer service. 

The car you drive greatly effects what you will have to pay to get your car covered. If you have a fast, small car you will probably find yourself paying a higher premium for your auto insurance. On the other hand, if you are driving a mid-sized car with all the safety features, your rates will be significantly lower.

Fact #3: Stopping payment? You'll pay in the long run 

If you think switching car insurance companies is as easy as stopping payment, think again. Sure, your policy will cancel, but your existing insurance company could report you to the credit bureaus for non-payment, damaging your credit score in the process. What's more, your insurance history will reflect a cancellation which may cause a new provider to decline your application or charge you higher premiums in the future. Instead, be sure to complete the necessary paperwork with your existing provider, such as a policy cancellation form, and time it right by starting your new policy on the date your old policy ends.

 When a insurance company sees a someone that has been driving without auto insurance, especially since it is required by state law, they will consider you irresponsible, and often times they will make you pay for it. If you are switching companies, make sure you have a replacement set up the day your current policy expires to avoid extra charges. (And never, ever let your auto insurance lapse!)

Fact #4: Your car insurance company can cancel or non-renew at any time 

Your insurance company can cancel your policy at any time if you violate one or more of its guidelines during your policy period. Same goes for non-renewal. Things such as failing to pay your premium on time, losing your driver's license due to suspension or revocation, submitting too many at-fault claims, or misrepresenting your driving history or past insurance claims could all be reasons for cancellation or non-renewal.

In either case, your carrier must notify you in writing within a timeframe legally required by your state. When it comes to cancellation, your insurance company is required by law to state the reason, not so with non-renewal. If you want a reason but aren't provided with one, you must send your insurer a written request. If you believe you've been unfairly treated, you may have legal recourse through your state's department of insurance. 

And don't forget about your "binding period," the time when your insurance company is especially conscious of your risk level. The binding period usually occurs within 60 days following your auto insurance application. If your insurer finds a discrepancy on your application, on your driving record or with your credit, it can cancel your policy. 

Fact #5: You could save money by paying your car insurance premium in full 

You might be surprised to learn most car insurance companies charge an administrative fee to break up your premium payments into installments, such as paying every six months, every three months or every month. The more you divvy up your payments in installments, the more these "convenience fees" add up, and your once-cheap car insurance can now cost substantially more. There may also be charges for the method of installment payment you choose, such as automatic bill pay or pay-by-phone. 

Be sure to ask your provider what its administrative fees are. If it makes financial sense and you can swing it, pay your premium up front and in full. Not only will you avoid the added expense, you won't have to worry about missing a payment, or being late on payments, both of which could be grounds for cancellation. 

Fact #6: Comprehensive coverage doesn’t mean complete coverage.

While comprehensive coverage may sound like coverage that will cover you in every situation, this is certainly not the case. Comprehensive coverage simply means you are covered in scenarios other than collisions. Theft, flooding, vandalism, and fire damage are examples of when comprehensive coverage will help you.

Fact #7: You can ask for discounts.

Before signing for auto insurance with a particular company, don’t be afraid to ask for discounts. You’d be surprised what discounts you qualify for. 

 

Understanding some basic, but important, facts about auto collision insurance

It is mandatory that you have some basic auto collision coverage in the US. It is against the law to be driving around without auto insurance. If you wish to drive around legally then you will require the basic liability cover. With this cover you will be able to cover costs up to a certain fixed amount if you get hit by another vehicle, objects etc. This coverage will not include fixing your vehicle.

The next big coverage is the full coverage that includes the comprehensive as well as the collision coverage. This type of coverage basically means that the insurance company will cover the costs up to a fixed amount for different types of accidents and will also pay for repairs that your vehicle will incur.

A deductible is the amount you agree to pay while purchasing the policy. This is a one-time payment that is paying for a part of the damages. This could range between 100 to 500 dollars most of the time. If you pay a higher deductible you will be paying lesser premiums and if the deductible is lower, then the premiums will be much higher. The deductible will not change but will remain the same irrespective of the money the insurance company has to shell out.

The type of coverage you need will largely depend on the vehicle you own, where you drive, what is the damage you want your insurer to pay for in the event of an accident. The costs will vary depending on many factors such as the age of the driver, the driving record, and the areas the vehicle will be driven.

There are predetermined amounts that will be paid by the insurance companies in the event of an accident. However, with some companies these values may be changed but the premiums will either increase or decrease depending on the coverage you want. If you have a brand new car, it makes sense to take a full coverage because if you hit something most of the companies will pay up the fair market value of the vehicle. However, if you have purchased only basic liability coverage then you will get nothing to fix your new car. If you have taken some form of loan from the banks or lenders to purchase the car, then it will be mandatory for you to take a full coverage until the term of the loan. Choose the coverage based on the vehicle you own.

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Distracted Driving: ONE TEXT OR CALL COULD WRECK IT ALL

Distracted driving is a dangerous epidemic on America's roadways. In 2009 alone, nearly 5,500 people were killed and 450,000 more were injured in distracted driving crashes.

Numerous public opinion surveys show most drivers believe that using cell phones while driving is dangerous. Indeed, talking on cell phones while driving is estimated to increase crash risk fourfold.

Over 50 research studies have shown that using phones while driving is risky. Each year, cell phones are a factor in 1.3 million crashes, hundreds of thousands of injuries, and thousands of deaths.

Each day, more than 15 people are killed and more than 1,200 people are injured in crashes that were reported to involve a distracted driver.1 Distracted driving is driving while doing another activity that takes your attention away from driving; these activities can increase the chance of a motor vehicle crash. 

There are three main types of distraction: 

•Visual—taking your eyes off the road;
•Manual—taking your hands off the wheel; and
•Cognitive—taking your mind off what you are doing.

Distracted driving activities include things like using a cell phone, texting, and eating. Using in-vehicle technologies (such as navigation systems) can also be sources of distraction. While any of these distractions can endanger the driver and others, texting while driving is especially dangerous because it combines all three types of distraction.

How big is the problem? 

  • In 2009, more than 5,400 people died in crashes that were reported to involve a distracted driver and about 448,000 people were injured.

  • Among those killed or injured in these crashes, nearly 1,000 deaths and 24,000 injuries included cell phone use as the major distraction.

  • The proportion of drivers reportedly distracted at the time of a fatal crash has increased from 7 percent in 2005 to 11 percent in 2009.

  • When asked whether driving feels safer, less safe, or about the same as it did five years ago, more than 1 in 3 drivers say driving feels less safe today. Distracted driving—cited by 3 out of 10 of these drivers—was the single most common reason given for feeling less safe today.

  • A recent CDC analysis examined the frequency of two major distractions—cell phone use and texting—among drivers in the United States and seven European countries (Belgium, France, Germany, the Netherlands, Portugal, Spain, and the United Kingdom). Results of the analysis included the following findings:

Cell phone use while driving: 

  • 25% of drivers in the United States reported that they “regularly or fairly often” talk on their cell phones while driving.

  • In Europe, percentages ranged from 21% in the Netherlands to 3% in the United Kingdom. 

  • 75% of U.S. drivers ages 18 to 29 reported that they talked on their cell phone while driving at least once in the past 30 days, and nearly 40% reported that they talk on their cell phone “regularly” or “fairly often” while driving.

  • In Europe, percentages of young adults who reported talking on their cell while driving at least once in the past 30 days ranged from 50% in Portugal to 30% in the Netherlands.

Texting or e-mailing while driving: 

  • 9% of drivers in the United States reported texting or e-mailing “regularly or fairly often” while driving.

  • In Europe, percentages ranged from 10% in the Netherlands to 1% in the United Kingdom.

  • 52% of U.S. drivers ages 18-29 reported texting or e-mailing while driving at least once in the last 30 days, and more than a quarter report texting or e-mailing “regularly” or “fairly often” while driving.

  • In Europe, percentages of young adults who reported texting or e-mailing while driving at least once in the past 30 days ranged from 44% in Portugal to 17% in the United Kingdom.

What are the risk factors?

  • Some activities—such as texting—take the driver’s attention away from driving more frequently and for longer periods than other distractions.

  • Younger, inexperienced drivers under the age of 20 may be at highest risk because they have the highest proportion of distraction-related fatal crashes.

How can distracted driving be prevented? 

  • Many states are enacting laws—such as banning texting while driving—or using graduated driver licensing systems for teen drivers to help raise awareness about the dangers of distracted driving and to keep it from occurring.

  • On September 30, 2009, President Obama issued an executive order prohibiting federal employees from texting while driving on government business or with government equipment.

  • On October 27, 2010, the Federal Motor Carrier Safety Administration enacted a ban that prohibits commercial vehicle drivers from texting while driving.

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Understanding Terrorism Insurance

Terrorism insurance provides coverage to individuals and businesses for potential losses due to acts of terrorism.

Individuals Standard homeowners insurance policies include coverage for damage to property and personal possessions resulting from acts of terrorism. Terrorism is not specifically referenced in homeowners policies. However, the policy does cover the homeowner for damage due to explosion, fire and smoke—the likely causes of damage in a terrorist attack.

Condominium or co-op owner policies also provide coverage for damage to personal possessions resulting from acts of terrorism. However, damage to the common areas of a building like the roof, basement, elevator, boiler and walkways would only be covered if the condo/co-op board has purchased terrorism coverage.

Standard renters policies include coverage for damage to personal possessions due to a terrorist attack. Again, coverage for the apartment complex itself must be purchased by the property owner or landlord.

Auto insurance policies will cover a car that is damaged or destroyed in a terrorist attack only if the policyholder has purchased “comprehensive” coverage. Most people who have loans on their cars or lease are required by lenders and leasing companies to carry this optional form of coverage. People who buy only liability coverage are not covered in the event their vehicle is damaged or destroyed as the result of a terrorist attack.

Life insurance policies do not contain terrorism exclusions; proceeds will be paid to the beneficiary as designated on the policy. Health and disability insurance policies may provide coverage for loss of life, injury or sickness to individuals in the event of a terrorist attack.

Businesses Prior to 9/11, standard commercial insurance policies included terrorism coverage as part of the package, effectively free of charge. Today, terrorism coverage is generally offered separately at a price that more adequately reflects the current risk.

Insurance losses attributable to terrorist acts under these commercial policies are insured by private insurers and reinsured or “backstopped” by the federal government pursuant to the Terrorism Risk and Insurance Act of 2002 (TRIA). Under TRIA, owners of commercial property, such as office buildings, factories, shopping malls and apartment buildings, must be offered the opportunity to purchase terrorism coverage. TRIA was renewed for a further two years in 2005 and is set to expire at the end of 2007.For the terrorism coverage to be triggered under TRIA for commercial policies, a terrorist attack has to be declared a “certified act” by the Secretary of the Treasury.

No such declaration is needed to trigger coverage under home and auto policies because there are no exclusions for terrorism.

What is not covered? There are long-standing restrictions regarding war coverage and nuclear, biological, chemical and radiological (NBCR) events in both personal and commercial insurance policies.

War-risk exclusions reflect the realization that damage from acts of war is fundamentally uninsurable. No formal declaration of war by Congress is required for the war risk exclusion to apply. Nuclear, biological, chemical and radiological (NBCR) attacks are another example of catastrophic events that are fundamentally uninsurable due to the nature of the risk. Under the Terrorism Risk Insurance Act, if some NBCR exclusions are permitted by a state, an insurer does not have to make available the excluded coverage.

Business Interruption Insurance Property damage to commercial buildings from a terrorist attack also may include claims for business interruption. Business interruption insurance (sometimes referred to as business income coverage) covers financial losses that occur when a firm is forced to suspend business operations either due to direct damage to its premises or because civil authorities limit access to an area after the attack and those actions prevent entry to the business premises. Coverage depends on the individual policy, but typically begins after a waiting period or “time deductible” of two to three days and lasts for a period of two weeks to several months.

Business interruption losses associated with acts of civil authority (e.g., closure of certain area around the disaster) can only be triggered when there is physical loss or damage arising from a covered peril (e.g., explosion, fire, smoke, etc.) within the area affected by the declaration. The loss/damage need not occur to the insured premises specifically. Reductions in business income associated with fear of traveling to a location, in addition to closure to areas by authorities because of a heightened state of alert, would not be covered by business interruption policies.

Workers compensation Workers compensation—a compulsory line of insurance for all businesses—covers employees injured or killed on the job and therefore automatically includes coverage for acts of terrorism. Workers compensation is also the only line of insurance that does not exclude coverage for acts of war. Coverage for terrorist acts cannot be excluded from workers compensation policies in any state.

Life/health and disability insurance policies may provide coverage for loss of life, injury or sickness to individuals in the event of a terrorist attack.

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

This may sound a little strange at first, but it is an effective way for auto insurance companies to judge one’s responsibility. Not only does is this a good indicator of if you will pay on time or not, but it is also an effective judge of character, something auto insurance companies find very important.

Credit scores are based on an analysis of an individual’s credit history. Insurers often generate a numerical ranking based on a person’s credit history, known as an “insurance score,” when underwriting and setting the rates for insurance policies. 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. For example, an individual or family that demonstrates less financial dependability may be more likely to file an insurance claim. Therefore this individual should also pay higher premiums on their insurance policy.

Both federal law and state law allow insurance companies to look at your credit information, without  your knowledge, and as provided under the rules of  the Fair Credit Reporting Act. Because the law only  allows credit reporting agencies to use certain  information in calculating a credit rating, they've  developed what is called an insurance credit score.

Typical inputs to this credit score would include monthly bill payment patterns, the total number of credit cards and / or loans outstanding, collection activity, total outstanding debt, and the amount of history on an account.

If you have a personal auto insurance policy or homeowners insurance, then your insurance company may use the information in your credit history for the following:

  • Ratings - your rating determines how large a premium is charged on an insurance policy. So negative factors in your credit history can increase the cost of your insurance. 

  • Underwriting - this is the process of determining whether or not an insurance company will insure you, or renew an existing policy.

Calculating Insurance Credit Scores

Each credit rating agency will have a slightly different approach to calculating an insurance credit score; however the elements that go into the score will be similar. Typically those factors would include:

  • Bankruptcies, collection activity, home foreclosure, tax liens, and other information available through public records. 

  • Frequency of late payments, late payment patterns to credit card companies or other creditors and lenders. 

  • Total number of lines of credit an individual has outstanding. 

  • Credit in use, and credit history. In general, the more credit in use, and the more history on file, the better the credit rating. 

  • Outstanding debt relative to the amount of credit offered. Individuals that "max out" their credit are viewed as riskier individuals.

Protections offered Consumers

Starting in January of 2003, consumers were offered some protections in terms of how insurance companies could use credit information. This includes information that cannot be used to calculate a score including:

  • The total number of credit inquiries in your credit file. 

  • The total amount of available credit that is unused. 

  • An insufficient credit history to develop a score, or a lack of credit history. 

  • Debt associated with the purchase of a new vehicle, or buying a new home. 

  • The types or issuers of credit cards and debit cards carried.

This kind of information cannot be used to cancel, or non-renew, an existing insurance policy or deny coverage to a family or individual.

NB: Insurance credit scores are  just one of several factors used by insurance  companies to determine policy premiums.

 


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Did You Know

Allsafe Insurance and Financial Services provides Free Notary Services to all current clients and their friends and family.

Factors that may affect your Auto Insurance premium are:

  • Age

  • Gender

  • Marital Status

  • Driving Record

  • Previous Insurance Coverage 

  • Credit History 

  • Geographic Location 

  • The Vehicle Type

  • Vehicle Use 

  • Theft protection devices

  • Multiple cars and drivers

 An Educated Consumer is an Empowered Consumer!

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