Shopping For Personal Insurance

It used to be shopping for personal insurance involved looking in the yellow pages, calling a few agents and maybe State Farm or Nationwide. You gave info over the phone, and what you said was taken as the truth. The only records checked were your driving record.

Most insurers now look at credit scores and loss history databases to verify what you tell them. I’m not complaining. I’m pointing out the fact that your financial history and claims experience is now more important than ever. Bad credit / several losses = higher premiums.

It was just announced today that the insurance industry loses over $16 billion a year because of rating errors on auto insurance policies – pleasure use rating instead of commuting use, young drivers not listed on the policies, stuff like that. You can be sure that number will get some insurers’ attention. Look for carriers to start auditing policies for unreported drivers and changes in vehicle use.