Why do auto insurance company need your date of birth and a Credit check before getting insurance?

Why do auto insurance company need your date of birth and a Credit check before getting insurance?

My wife is annoyed at the fact as am I that first auto insurance is so damn high for women. Also we are annoyed at why they now want personal info like your date of birth and credit check. Why is it that it is this way? I think it is Stupid for credit checks always have.


The older you are the better rate you will get until you get to be a too old. They also check your credit now and if you have good credit you will get a better rate. Having bad credit is a sign of irresponsibility and they think you will drive the same way.


Some places do not check your credit. Here's the reasons they ask for and require the info depending on the company. Date of birth will classify the applicant in age groups that "show" how typical driver's in that age range drive, how many accidents they have reported, as well as other driving habits. As far as the credit check goes, it's because they want to see what type of payment history you have. If you have good credit, and pay on time, they will give you better rates sometimes. If you have poor credit, miss payments all the time, etc. They will most times not insure you. I myself am a Licensed Life Insurance Agent in the state of Ohio. We do not pull credit for life insurance, but our agents do for the property and casualty insurance.


car insurance is usually lower on average for women... not sure why you're finding it to be high.. try a specialist women's auto insurance company if one exists in your country of residence.generally speaking, first time insurance is very very high as new drivers are stastically most likely to be the ones causinginvolved in accidents.why do they want personal details such as date of birth? again, they use the date of birth to calculate age. young drivers are the ones who are most commonly involved in accidents and so there is higher risk in insuring them. sometimes them taking your date of birth is a good thing as it reduces insurance if you are in certain age groups.why a credit check? well what happens if they insure you on the assumption you will pay up every three months and then after 5 months you decide you don't want to pay them again? a credit check looks at your payment ratings with other companies.. it indicates how reliable you are in making payments you have promised.


Date of birth is simple. We need to verify how old you are. Rates vary for drivers from age 16-100 (go figure). They start out bad at age 16 and progressively get better through ages up to age 65 generally, from 66 and after then begin to reverse again as drivers get too old.Another reason is that it is needed to verify your identity as well.As for the credit check. This one often upsets customers. However these days a large percentage of insurance companies do run a credit check. The reason behind this is that it has been proven statistically that customers with higher credit scores have a tendency to have better driving records and are more responsible.They file fewer claims.They have less accidents.They have less tickets.They pay there bills on time.They are less likely to cancel.Now these are all generalities there are of course exceptions to the rule in both directions. That is why these are just a couple of many factors used to rate for auto insurance rates.Source(s):Insurance Agent 12 years.


auto insurance in America is regulated by the states.DOB has two purposes -- one, it helps make sure that the driving record they pull up from their databases is in fact yours. Second, there is no doubt that age of the driver does play a role in the frequency and severity of accidents and thus in the rates you should pay.Credit check. Amazingly enough, someone at the insurance companies figured out that people with excellent credit are more careful -- even as automobile drivers. Thus, they asked the state for permission to use credit rating as a factor in pricing auto insurance.some states prohibit this. most allow it. since it does seem to be predictive [and since it also predicts the chances of the renewal bill being paid on time] there seems to be value in the process for those who have good or excellent credit.btw, good and excellent credit describes contributors to political campaigns, too. you have to have a bit of money to give some to your candidate.Source(s):does this help?


try this sites (i've used it): http://insquote.notlong.com/0AAaXTv


Many of the other answers about how age affects is correct. The rates for males are generally higher than for females since males generally have more accidents than females especially at younger ages. (The difference in rates becomes less as you get older.) If you wife's rates are higher than your rates, it is likely that she is much younger than you or that her rates reflect that she has a worse driving record than you do.Then there are the credit checks. Not only do insurance companies want to know if you will pay your bills, they may also be concerned about fraud. They do credit checks to help establish if you identity is genuine. If they cannot determine that your identity is genuine, they may refuse to insure you. One time, we had auto insurance with a certain company. Then we applied to get home owners insurance with the same company. We had provided the information for the credit check when we got the auto policy. Since we had already provided the credit information with the auto policy, we were not required to provide it again. A couple of weeks later, we got notice that our auto insurance was canceled since they did not have the proof of our identity through our credit information. We went to the agent and complained. It turned out that the home owners department had physically taken the credit info from the auto department. Since the auto dept no longer had the physical documents, they assumed they did not exist and we had made a fraudulent application. They had to issue a new policy to us since they had canceled the first one in error. (This happened in the days before everything was on computer.)


Because they base your insurance rates on your credit score as well as age, traffic tickets, and accidents. There are some companies that don't use your credit, but it depends by state.



Popular Q&A

Funny Questions To Ponder...?
Great List. Because I'm bored, I'm going to answer them even though they are rhetorical:Why doesn't McDonald's sell hotdogs?Its a burger joint. Why doesn't Taco Bell sell burgers?At a movie theater which arm rest is yours?Both!What is Satan's last name?Satan-Sataniel, in Christianity as Lucifer...

Taking a trip to rocky point mexico how much money do we need for 3 days 10 points best answer?
My in-laws have a condo there, and we visited them for 4 days a few years ago I don't know what the exchange rate for dollars/pesos is right now. One thing you need to do when you first get there is to purchase Mexican auto insurance. Your American car insurance doesn't work in Mexico, and...

USAA auto insurance rates?
I know that with USAA there can be state requirements that will not be listed on your monthly statement, but on your declarations package. For example, we live in Florida and if you have USAA you have to have hurricane coverage, and it does go up yearly. Look over your documents. Another...

What income do I need for this mortgage?
Its not so much what income as what other bills you have. Depending on the bank, you can have as much as 45% of your gross income tied up in debts (and only those debts on your credit report matter to them.)Take your gross income (monthly) and times it by .45%. Now deduct any credit cards,...

Does anyone else see that the system of credit we have created has completely destroyed our society?
You can't even get a house without established credit. The ideology behind it is that if you borrow money and can prove that you can pay it back, then you are good to go. Also, cash money isn't good enough, because they don't get to charge interest on cash sums.