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Friday, 16 November 2012
Firm fined for safety failings
A construction and design company in Berkshire has been fined and ordered to pay costs after a bricklayer broke his pelvis and wrist following a fall.
Thursday, 15 November 2012
Mortgage rates in Danbury, Connecticut
Looking for assurance that you’ll find the best mortgage rates in Danbury, CT? Then check out our site. We provide all the guides, tools and calculators needed to make an informed decision. Rates can change throughout the day and week, but our easy search function allows to you to check local mortgage rates in Danbury and throughout
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Sandy victims get special IRS treatment
The Internal Revenue Service is offering Supserstorm Sandy victims special tax consideration when it comes to tax deadlines and recovery payments.
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Wednesday, 14 November 2012
Auto loan rates in Tucson, Arizona
It's a good time to be the market for a new vehicle, especially if you have to finance. Car loan rates are low throughout the country. The average 48-month new-car loan rate is currently at 4.17 percent, and there are several lenders offering even better rates. Use our research to find auto loan rates in
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Credit Rating Can Affect Car Insurance Rates
You may already know that car insurance companies use a long list of factors to determine how much each of us will pay for car insurance. Things they take into consideration include:
- age and sex of driver
- driver history
- make and model of the car we drive
- geographic location
What you may not know is that credit ratings are also factored in. This suggests that a poor credit rating could possibly have a negative effect on insurance rates. Indeed, that is exactly the case.
The Definition of “Credit Rating”
Before we talk about how your credit rating affects your car insurance rates it’s necessary to explain the credit rating process. In the United States a consumer credit rating is expressed in a number that can range anywhere from 300 to 800, depending on the baseline used.
That number is the result of a mathematical equation created by two engineers in the 1950s. They created the formula to see if they could predict if, and when, a consumer would default on his credit. Surprisingly, their formula turned out to be an incredibly accurate.
When this mathematical formula is applied to an individual, the resulting number is known as the “credit score.” That score tells a bank, store, or insurance company how likely you are to miss payments or fall permanently behind. Most notably, it predicts the likelihood that you will fall behind within the first six months of establishing credit.
Credit Rating Can Affect Car Insurance Rates
Credit Rating and Car Insurance
Your credit score is important to an insurance company because they need to be confident you will make all of your payments on time and without question. They are depending on your payments as a means of helping support their cash position while also giving them some money to invest. If you have a low credit score your insurance company has reason to worry that you will miss a payment or two.
If you have a bad credit score (below 500 is considered bad) you’re likely to see higher car insurance rates. You can bring those rates down in the future by improving your credit score. As an added bonus, an improved credit score means your financial situation is healthier all the way around.
State Laws
By and large, state laws make it perfectly legal for insurance companies to consider your credit rating when determining your car insurance rates. But most of them make it illegal for an insurance company to refuse to cover your based only on your credit score. In other words, it can be a factor, but your credit score cannot be the sole determiner of your rates or whether or not you get a policy.
In addition, if you are rejected by an insurance company, state laws require that company to inform you in writing; they are required to include the reasons for rejecting you in their statement. If you see your credit score as being a factor, you know you need to work on improving that.
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