Sancerre is a lifestyle fashion brand that is designed to inspire women and support beautiful and spirited lives. Sancerre was founded by early ‘80’s love child Sarah Wilkinson who serves today as Group Creative Director and in the position continues to guide the Company on design and inspiration for every one of the collections that our customers enjoy at Sancerre
Will Your Credit Score Affect Your Car Insurance Premium?
Car insurance is one of those monthly expenses that we all are entitled to pay. Sometimes it can feel like we are paying more than others. In reality, it’s very likely that you may be paying more for your car insurance than your best friends. We have all been told that our age, driving history, and type of car we own affect our rate. However, what about your credit score?
The reality is that your credit score is becoming another factor in the Car Insurance Youi algorithm to determine what your monthly premium will be. It is definitely not the biggest factor, however, it does weigh into determining your rate. Why is this possible? First, you need to understand how car insurance companies work.
An Incite On How Car Insurance Companies Determine Rates
Insurance companies are in the business of taking on risk. Many describe it similar to the practice of gambling, just with usually better odds. The goal of any car insurance company is to make money, which is the goal of any for-profit business out there. In order for the companies to make a profit, they must pay out less in claims than what they make from their customers.
To keep their claim payouts as small as possible insurance companies will rely heavily on statistics. These statistics show correlations between certain attributes in a person and their risk of filing a claim. For example, teenage drivers have been statistically shown to file for more insurance claims than other age groups.
The car insurance companies will use this data to determine the rate of the individual that is signing up. Those that have attributes which show a statistically high rate of filing a claim will be charged more than those who don’t. So following the example above, a teenager is likely to be charged a higher rate than a person in another age group.
Why Is My Credit Score A Factor?
According to two official studies that were done in 2003 and 2007 by both the McCombs School Of Business and the Federal Trade Commission, those with a lower credit score cost insurance companies more on average than those with a higher score. The study that was performed at McCombs was of over 175,000 drivers within the state of Texas. Their results show a steady correlation of claim pay out risk increasing as credit scores decreased.
The study that was performed by the FTC was looking into the effectiveness of credit-based insurance scores. The study found that using a person’s credit score as a factor in determining their insurance rate was an effective measure of the risk the insurance company was taking on. This study has been accepted by many insurance providers as the key to better assessing their risk for new customers.
Is It Legal?
The answer is that it depends on the State in which you reside. California, Hawaii, and Massachusetts have put a ban on using credit scores as a factor in determining an individual’s insurance rate. The remaining States haven’t put any sort of restriction on this practice.
Choosing Motorcycle Insurance
Buying a motorcycle is a fun and exciting time in a rider’s life, but it’s important to make sure that the excitement of the moment does not overshadow the need to properly insure your new bike. Obtaining the proper motorcycle insurance is an essential part of motorcycle ownership. Here are six things you need to know when choosing the right motorcycle insurance for you.
Every State Has Different Requirements
Just like each state has its own beautiful scenery to take in while riding your bike, they also have their own requirements when it comes to the minimum motorcycle insurance with Youi needed to legally take those scenic drives. There are three main areas in which your state typically specifies a minimum amount of coverage required: the maximum amount allocated to cover the bodily injury of each individual involved in the accident, the maximum amount allocated to cover the bodily injury of all individuals involved in the accident, and the maximum amount allocated to cover all property damage that results from the accident. While the state requirements for minimum liability coverage for motorcycles generally correspond with those for non-commercial automobiles, that is not always the case. It is important to verify the requirements in your state to make sure your motorcycle insurance policy is within the legal parameters.
The Minimum May Not Be Enough
Your state most likely requires a minimum amount of coverage, but don’t forget that those minimum requirements may not be enough to adequately cover the financial aspects of an accident. Legal statutes are typically put in place to protect the other parties involved in an accident for which you are legally responsible, but you should consider your potential financial losses as well. Motorcycle insurance policies that include collision and comprehensive coverage allow you to replace or repair your bike if it is stolen or damaged in an accident, a fire, or an act of vandalism. It is also vital that you consider buying coverage that protects you in case an uninsured or under insured motorist causes an accident in which you suffer a financial loss or personal injury.
Your Passengers Need to Be Covered
Since there will be times when you want to share the thrill of riding your motorcycle with a special passenger, you want to make sure that he or she is also protected in the event an accident occurs. If the worst does happen and you’re at fault, the basic liability coverage provided by your motorcycle insurance policy will probably not cover your passenger’s medical expenses. It’s best to check with your insurance agent to make sure your policy includes guest passenger liability so your friend or loved one is covered.
Replacement Cost Needs to Be Included
A motorcycle is a fun and efficient way to get around town, but it is an item that depreciates over time. It is important to remember that your bike’s value at the time of a potential accident will most likely not be the same as it was the day you drove it off the showroom floor. Typical collision and comprehensive policies will only cover replacement costs up to the current value of the bike. If you want to be able to replace your bike with a new one, then you need to make sure that your motorcycle insurance policy will pay for the cost of purchasing a new bike.
Additional Parts May Not Be Covered
Part of the excitement of purchasing a motorcycle is shopping for all the accessories and custom parts that go along with it. You should make sure you know which of those accessories will be covered under your motorcycle insurance policy in case of accident, theft, or damage. Accessories that are considered safety equipment, such as helmets, boots, gloves, and jackets, are automatically covered under some policies. You should still check with your agent to make sure these items will be replaced if necessary. Other custom parts and accessories will probably require additional coverage.
You May Be Eligible for Some Discounts
Check with your agent to make sure you are receiving all discounts for which you are eligible. If you obtain your motorcycle insurance from the same agency that covers your home and/or other automobiles, then you may qualify for a bundling discount. Completion of certain approved safety courses can also create discount opportunities for you. Other discounts may be available if you store your bike in a secure building or if you are a member of an association or riding club.
For most riders, motorcycle insurance is a necessary part of bike ownership. While this can add to the cost of owning and maintaining your favorite mode of transportation, being well-informed about the insurance policy you buy will protect you financially and provide you with the peace of mind you need to fully enjoy being a biker.