Auto Insurance Brokers - Did You Know Your Credit History Can Affect Your Premium?

History Of Insurance

By Dewey Kearney

Auto insurance brokers are better than getting quotes from just one "big name company." Why? Because many - if not most - auto insurance companies use your credit history when factoring how much they charge you.

Though you may disagree, they believe that people with a better credit history will, in all probability, have fewer insurance losses.

The Federal Fair Credit Reporting Act allows them to do it. It says they may use "Reasonable procedures" and credit history has been ruled as one of them - this also covers consumer credit, insurance, and employment as long as it is fair and equitable.

If you have bad credit then applying for an online quote from one of the big insurance companies won't be accurate. My daughter used to sell cars and many of her customers with bad credit were quoted one rate online and another when they actually went to establish the insurance, because that's when the credit got pulled and everything was adjusted. The insurance credit score was developed by the insurance companies by using the same methods as the credit bureaus to predict your risk factors.

• Foreclosures, liens, collections etc.
• Your late payment history
• How long your credit history is

Each insurance company uses different techniques. Auto insurance brokers aren't legally obligated to tell you your insurance credit score. If you haven't checked your credit report in awhile we suggest you order a copy today and know what's on it before you start insurance shopping.

It's a good idea to shop for insurance with auto insurance brokers who represent many companies rather than just one big one. Auto insurance brokers will look at your needs and match you with the lowest rates possible. Insurance, like any other commodity, is subject to competition. If you have bad credit it's better to use a smaller, lesser known insurance company, as they will typically give you the best rates. Most of these companies work only through auto insurance brokers, and don't advertise on TV and the web. Which is why they can offer you lower rates than the big companies. Give one of our auto insurance brokers a call today and let them compete for your business!

Why Use An Auto Insurance Broker

By Dave Davies

Do you know the value of an auto insurance broker? If you were ever in an accident, would your insurance replace your car? Would it pay for damages? Auto insurance is important to think about. Are you positive your insurance will cover it all?

After an accident is not the time to be thinking about insurance, but looking through all the different insurance options can be confusing at best. An insurance broker can go through insurance polices with you and help you to select the best insurance for you. There are many misunderstandings about auto insurance brokers. Do You Know Insurance?

Fully Comprehensive Auto Insurance For Your Car

This type of insurance, the fully comprehensive auto insurance, is probably the most expensive type you will be offered. If your car is financed by a bank or finance company, you need this insurance.

Fully comprehensive auto insurance insures the car and the owner against any number of events. Did you know that insurance policies don't cover 100% of the car? Do you know how much your insurance covers?

Third Party, Fire & Theft Insurance

You may need to still have third party, fire and theft auto insurance. Also, if you aren't at fault in the accident, your insurance likely won't pay for your insurance, as it doesn't usually cover you if the third party doesn't have insurance.

Separate Third Party Insurance Policy

Those car owners whose cars are very old or have no value to them will often choose this type of auto insurance.

If you have questions, an auto insurance broker can help.

How the Process with an Auto Insurance Broker Works

It starts with you picking an auto insurance broker that will work with you. Local insurance brokers generally get you the best deals for your area. Your insurance broker will also be able to help you select which insurance is right for you and your vehicle. The best part is, your insurance broker is working for you. Do a bit of research online for local auto insurance brokers.

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