Hawthorne Press Tribune
Herald Publications - El Segundo, Hawthorne, Lawndale & Inglewood Community Newspapers Since 1911 - (310) 322-1830 - Vol. 63, No. 47 - November 25, 2021
TeleHealth Van Works with the City
to Bring Health Care to Those in Need
TeleHealth Van held their debut ceremony for their partnership with the City of Hawthorne. TeleHealth vans are for mental and other health services for those who may not otherwise have access to health care. The vans will be parked in various locations around the city
for people to approach. Photo courtesy City of Hawthorne.
Finance
The Weekly Newspaper of Hawthorne
Credit Factors That Affect Auto &
Homeowner’s Insurance Premiums
(BPT) - People think of their credit
scores when measuring their “creditworthiness,”
like when they’re looking to take
out a loan, buy a home or open a new
credit card. But did you know your insurance
credit score can affect your auto insurance
premiums too?
Before auto insurers take you on as
a policyholder, they might use your credit
score as an indicator to evaluate how likely
you are to file a claim. If your score doesn’t
fit within their standards, you may get
charged a higher premium. On the other
hand, some insurance scores are loss ratio
models, so they actually rank you based on
the probability that you’ll be a more profitable
customer.
According to Consumer Reports, the difference
in auto insurance premiums related
to credit scores can be significant. Drivers
who only have “good” scores can end up
paying from $68 to more than $500 more
annually in comparison to those who have
excellent scores.
Moreover, it’s important to know that
your credit score is not the only factor that
determines your premiums. According to
Experian, if you live in Hawaii, California,
Massachusetts or Michigan, auto insurers
can’t even use your credit information to
determine auto insurance premium.
Insurance companies say that a person’s
credit scores help them to better predict
their risk of insurance losses. While a score
evaluation can seem like a broad judgment,
there are often certain factors auto insurers
will look at when determining your monthly
premium, such as:
The longer a person has credit and keeps
that credit in good standing, the higher their
score. However, while people who’ve had
credit longer can stand a good chance at
getting a lower premium, it’s not a guarantee.
Insurance companies may still view you as
a risk if, for example, you have an excellent
credit history but a poor driving history.
When you sign up for auto insurance,
your provider wants to gauge whether you
are in financial stress or not and how likely
it is that you will file a claim. So if you
regularly pay your bills when they’re due
and don’t have any missed or delinquent
payments reflected on your score, you should
be OK.
However, with life’s unexpected twists and
turns, sometimes it’s hard to maintain a healthy
credit score, even if your score is historically
excellent and you are seen as low risk.
Fortunately, many auto insurers understand
this and will offer you a reconsideration for
the amount of your premium for what they
call “extraordinary circumstances.” Some of
those circumstances may include:
• Death
• Divorce
• Serious illness/injury
• Temporary and involuntary loss of
employment
• Military deployment
Situations often vary and insurers often
have different policy guidelines. If you’re
curious, contact your insurer to see what
circumstances they do and don’t consider.
Auto insurers, like lenders, want to see the
correlation between various factors, such as
a good credit mix and a lower credit risk.
Applying for insurance can feel daunting.
But when you have the right credit information
in your hands, you should be able to get
a better idea of what to expect. Generally
speaking, a strong credit score can help you
qualify for lower insurance premiums when
you shop around.
Check your free VantageScore credit score
here: https://vantagescore.com/consumers/
education/tools/free-credit-scores. •
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