What's my credit got to do with it?
Hi Everyone, sorry I haven't written in a while...we've been super busy and were short on staff for awhile, but now I'm back on track. I thought I'd talk today about a common question that comes up when we explain that your "insurance credit score" comes into play on all insurance now. The first response from everyone is, "Whatâ€™s my credit got to do with it?"
The reality is, our credit rating is directly involved in so many parts of our lives. Long gone are the simple old days when a credit score was just for the credit card application, the loan for your next car or home. Your credit is now part of the process in many aspects of our lives including the premium charged for insurance.
Studies show that a person who is responsible with financial obligations is also more likely to be a responsible driver. This is the most difficult part of the insurance business...how to more accurately determine risk.
Wouldnâ€™t you rather have your $1,000,000 liability on the line for a person who has an established record of paying their obligations and has good driving record if you were insuring them. Pretty simple formula if you look at it from â€œthe Bean Countersâ€ perspective.
When credit scoring on insurance first came out, I was frankly opposed to it. I didn't see the correlation. Now that I see patterns of losses, there is indeed a connection.
There's also a high probability that if you've had 2 accidents in short succession, that you'll have a third.
So take advantage of all the monies spent by big Insurance Companies to study these types of issues when you're interviewing your new drivers or Owner Operators.
Talk to you soon!
Shelly Benisch, C.I.C.
Commercial Insurance Solutions, Inc. (CIS Inc)
PO Box 13553, Akron, OH 44334
330-864-1511 or 866-864-1511