Insurance

Now here's the next question. What's the best way to get a real quote without dishing out your ss # and having all those inquiries on your credit report?


Most insurance companies use credit scores as a measurement of risk, if you question credit score rating, the underwriters call it "an Insurance Score" and they won't describe what it is or how it factors into how it affects your risk. I couldn't argue NBOA and Progressive off credit rating but I think I learned that it is fairly important to them. My approach was to make the system work to my advantage. I haven't had any debt in about 25 years, other than a few credit cards. Credit cards were a convenience for us, not a necessity. We restricted credit card use to only 2 cash back cards, one 2% cash back, the other 2%,3% or 5% depending upon what we charged, the other thing we did was to manage when large amounts were charged. For example, I started paying cash (and giving up my 2%) for large expenses at the marina like annual charges for slip rent, bottom jobs, etc. I started checking my credit score and was surprised at, not the credit score because I don't borrow money and never checked it anyway, but at what happened to the premiums on the 2 progressive policies I have....my boat and a full coverage policy on a Jeep I keep at our house in Florida. Annual premiums on both decreased by 30% ......credit score on Experion went from low 800's to high 800's.

At the same time, cat 5, Hurricane Michael hit our area. The first outsider to show up at the marina to check the boats stored there for damage was the Progressive adjuster. He found our boat with no damage, blocked up in a storage barn on a concrete floor where she didn't even get rained on. The insurance company seemed to be impressed that some insureds do really try to avoid risk and protest our own assets.

So.......... keeping your ss# from the insurance agent probably hurt your ability to get a good rate from the company you were trying to buy insurance from. I think you can ask the credit reporting agencies to screen out credit inquiries when're you were not requesting credit from their reporting.
 
Insurance dropped us earlier this year March 2020 (the same company that eliminated 1,000's of policyholders). House, cars, and umbrella ($1mil) all with Travelers. We added the boat but they wanted a survey, I got an in-water survey done with the caveat that the out of water needed to be done within 90 days. (covid 19 had just hit). We wet slip 12 months a year, stated value $150k, $1500 deductible, @ $1200 per year. Credit score 850.
 
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Credit scores drive insurance premiums. Establish credit and pay on time. Use two or three credit cards and do not allow monthly charges to go above 25% of your credit limits. Pay the full balance every month on time. Do not apply for store credit cards or apply for new credit cards as hard inquiries hurt your score. Rating agencies value stability, timely payments and long term card relationships. When you do these things your credit score will achieve a rating of "excellent" and your insurance premiums will go down for homeowners, auto, umbrellas and boat policies.
 
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Credit scores drive insurance premiums. Establish credit and pay on time. Use two or three credit cards and do not allow monthly charges to go above 25% of your credit limits. Pay the full balance every month on time. Do not apply for store credit cards or apply for new credit cards as hard inquiries hurt your score. Rating agencies value stability, timely payments and long term card relationships. When you do these things your credit score will achieve a rating of "excellent" and your insurance premiums will go down for homeowners, auto, umbrellas and boat policies.

one thing I don’t know the answer to, as credit improves will insurance companies continually check for increases in credit score and adjust premiums or do you have to request that?
 
one thing I don’t know the answer to, as credit improves will insurance companies continually check for increases in credit score and adjust premiums or do you have to request that?

Ask for a re-quote... They typically do not give it away...

annualcreditreport.com you can go here for free 1x per 12 months and receive 1 free credit report from all 3 major credit bureaus...

https://www.creditkarma.com you can sign up here for free and check your credit daily if you desire...

majors for excellent credit are:

The 5 Main Factors That Impact Your Credit Score
The main factors that go into how your credit score is calculated are:

  1. Payment history
  2. Amount of debt, also known as your credit utilization ratio
  3. Age of credit accounts or history
  4. Mix of credit accounts
  5. New credit inquiries
https://www.credit.com/credit-scores/surprising-things-that-affect-your-credit-score/
 
Ask for a re-quote... They typically do not give it away...

annualcreditreport.com you can go here for free 1x per 12 months and receive 1 free credit report from all 3 major credit bureaus...

https://www.creditkarma.com you can sign up here for free and check your credit daily if you desire...

majors for excellent credit are:

The 5 Main Factors That Impact Your Credit Score
The main factors that go into how your credit score is calculated are:

  1. Payment history
  2. Amount of debt, also known as your credit utilization ratio
  3. Age of credit accounts or history
  4. Mix of credit accounts
  5. New credit inquiries
https://www.credit.com/credit-scores/surprising-things-that-affect-your-credit-score/

good to know, thanks. We use Mint for and it has an ongoing credit score report. I’ve had a hard pull for a refi this year and the score matches what the bank pulled so it seems pretty accurate
 
Ask for a re-quote... They typically do not give it away...

annualcreditreport.com you can go here for free 1x per 12 months and receive 1 free credit report from all 3 major credit bureaus...

https://www.creditkarma.com you can sign up here for free and check your credit daily if you desire...

majors for excellent credit are:

The 5 Main Factors That Impact Your Credit Score
The main factors that go into how your credit score is calculated are:

  1. Payment history
  2. Amount of debt, also known as your credit utilization ratio
  3. Age of credit accounts or history
  4. Mix of credit accounts
  5. New credit inquiries
https://www.credit.com/credit-scores/surprising-things-that-affect-your-credit-score/

sorry I should have mentioned that none of these inquiries show up or count as a "Hard Inquiry"
 
sorry I should have mentioned that none of these inquiries show up or count as a "Hard Inquiry"

That’s a great point and I think often overlooked (hard vs soft credit pull)

Does the insurance co have to do a one time hard pull when you sign for coverage or are they always soft? I didn’t check my report when we signed the new insurance policy
 
That’s a great point and I think often overlooked (hard vs soft credit pull)

Does the insurance co have to do a one time hard pull when you sign for coverage or are they always soft? I didn’t check my report when we signed the new insurance policy

Soft...
 
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one thing I don’t know the answer to, as credit improves will insurance companies continually check for increases in credit score and adjust premiums or do you have to request that?

I believe you need to continue to shop. I overpaid for insurance for years because I was too busy making a living to shop. Once I retired, I was able to spend more time running my personal business like I used to run the business that employed me for 34 years. First thing I did was look at insurance. Found myself a reputable local broker who serviced several friends and got bids. That move saved us more $4,000 per year back in 2011 and continues to be a good move. We had been with Liberty Mutual for home and auto 40 or more years, with only a handful of very small claims that were weather related. Mostly they were related to trees down and hail damage, and very sporadic. Each year our premiums went up a little but not enough to raise questions. The increases added up. I just received a letter from Liberty Mutual asking me to come back after having dumped them nine years ago. Long winded answer, but you have to shop to cash in on your good credit score. Insurance companies do you no favors. They have two departments. One tells you how great the company is and sells policies. The other receives your claim and tells you it's not covered.
 
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They have two departments. One tells you how great the company is and sells policies. The other receives your claim and tells you it's not covered.


This is spot on! I experienced this first hand on my home owners policy this year. I had to fight tooth and nail and finally prevailed but they sure tried to walk away from coverage. First time in 35 year making a claim.
 
I am an agent.
Most companies use credit rating for pricing....(In New York State at least). Hence the need for SS#'s. After that age-driving history-claim history come into play....As well as the vehicle specs. I always get a kick out of it when people ask others how much they pay.
 
View attachment 96975
Insurance companies do you no favors. They have two departments. One tells you how great the company is and sells policies. The other receives your claim and tells you it's not covered.

I'm not a fan of insurance companies but I do believe in giving credit where credit is due. In July 2019 my previous boat was damaged in a storm while tied to the dock. There was a 4 foot by 8 inch hole in my transom from a tree that got washed into the river. Progressive was very responsive and their inspector determined it was a total loss. Progressive then issued me a check for the agreed value. I could not have asked for a better process. I would definitely recommend Progressive for an agreed value boat policy.
 
I'm not a fan of insurance companies but I do believe in giving credit where credit is due. In July 2019 my previous boat was damaged in a storm while tied to the dock. There was a 4 foot by 8 inch hole in my transom from a tree that got washed into the river. Progressive was very responsive and their inspector determined it was a total loss. Progressive then issued me a check for the agreed value. I could not have asked for a better process. I would definitely recommend Progressive for an agreed value boat policy.
Maybe more of an exception than the rule. The North Shore Marina fire a few years ago was a nightmare for the 90 or so boat owners who through no fault of their own had to deal with the insurance claims process. Some just gave up boating because the process was so awful.
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