ate to their driving habits. The insurers have credible data to back this up and insurance departments across the country now generally accept insurance scoring as a viable rating tool. All of the factors that go into your insurance score are generally a closely held trade secret. It is difficInsurance companies are just like any other business in that they are out to make a profit. In any business, a company must correctly price its products in order to make a profit and many different methods are used to come up with a fair price.

The process of underwriting is simply the insurance company’s way of “evaluating” a risk so that it can set a reasonable price and make a profit from selling a policy. The days of using an applicant’s driving record, accident history, age and geographic location as the only underwriting tools are gone. They have been replaced by extremely complicated tiered rating plans that base your rate on a variety of factors that make up your insurance score. This is a complicated algorithm that takes into account many factors but typically your credit rating closely parallels your insurance score. This means that if you have a good credit score, you are very likely to have good insurance score and therefore a lower insurance rate. The theory is that groups with good credit will have fewer claims than similar groups with bad credit. The good credit group is considered to act more responsible and that behavior should translate to their driving habits. The insurers have credible data to back this up and insurance departments across the country now generally accept insurance scoring as a viable rating tool. All of the factors that go into your insurance score are generally a closely held trade secret. It is difficu

nsurance company’s way of “evaluating” a risk so that it can set a reasonable price and make a profit from selling a policy. The days of using an applicant’s driving record, accident history, age and geographic location as the only underwriting tools are gone. They have been replaced by extremely complicated tiered rating plans that base your rate on a variety of factors that make up your insurance score. This is a complicated algorithm that takes into account many factors but typically your credit rating closely parallels your insurance score. This means that if you have a good credit score, you are very likely to have good insurance score and therefore a lower insurance rate. The theory is that groups with good credit will have fewer claims than similar groups with bad credit. The good credit group is considered to act more responsible and that behavior should translate to their driving habits. The insurers have credible data to back this up and insurance departments across the country now generally accept insurance scoring as a viable rating tool. All of the factors that go into your insurance score are generally a closely held trade secret. It is difficely complicated tiered rating plans that base your rate on a variety of factors that make up your insurance score. This is a complicated algorithm that takes into account many factors but typically your credit rating closely parallels your insurance score. This means that if you have a good credit score, you are very likely to have good insurance score and therefore a lower insurance rate. The theory is that groups with good credit will have fewer claims than similar groups with bad credit. The good credit group is considered to act more responsible and that behavior should translate to their driving habits. The insurers have credible data to back this up and insurance departments across the country now generally accept insurance scoring as a viable rating tool. All of the factors that go into your insurance score are generally a closely held trade secret. It is difficredit score, you are very likely to have good insurance score and therefore a lower insurance rate. The theory is that groups with good credit will have fewer claims than similar groups with bad credit. The good credit group is considered to act more responsible and that behavior should translate to their driving habits. The insurers have credible data to back this up and insurance departments across the country now generally accept insurance scoring as a viable rating tool. All of the factors that go into your insurance score are generally a closely held trade secret. It is difficate to their driving habits. The insurers have credible data to back this up and insurance departments across the country now generally accept insurance scoring as a viable rating tool. All of the factors that go into your insurance score are generally a closely held trade secret. It is difficult at best to get an insurer to tell you exactly how this score is calculated as even the company’s own insurance agents don’t typically have this knowledge. Here is the formula that you need to know: a good credit score = a good insurance score = a lower car insurance rate.

For example: two different risks that are next door neighbors of the exact same age, living on the same street, driving the exact same cars, and having the exact same driving records….would expect to pay a similar, if not the same, rate. However, this is highly unlikely with the new tiered rating plans, where often, a hundred or more rates could apply for what seems like the same risk. This is primarily because of their insurance score. If one of the neighbors has a bad credit score, they would likely to pay a significantly higher rate, possibly even double, as the credit score will often parallel the insurance score. Remember the formula shown above. In fact, today, to get an accurate car insurance quote, at some point you generally must give your social security number so an insurance score/credit check can be done. Then and only then do you get the true rate.

Using credi