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CREDIT AND YOUR INSURANCE
By Chuck Wells
About 90% of insurance
companies now use your credit history to determine how much you
will pay for car and home insurance. That’s right; if you have
lousy credit, you are going to get lousy rates for your
insurance in the future.
Most people (who have poor credit) tell me that’s not fair.
After all, how they pay their bills should not influence their
insurance. Well, insurance companies say there is a connection.
They say that statistics show those who do not pay their bills
on time, go bankrupt, have too much debt, and default on loans
are bad news and will probably turn in more claims than those
who have good credit. They may be right but is it fair?
If you have a perfect driving record but have poor credit, you
will be paying a higher premium for car insurance. I don’t agree
with that. If you have an older car that does not need collision
coverage, you may also pay a higher premium because insurance
companies don’t want people who just drive older cars as they
have more claims. I don’t agree with that either. Some companies
will not touch you if you had an assigned risk policy because
they think you are a loser.
How can you get better
insurance rates?
- Pay your bills on time and
do not default on loans.
- Do not have too many credit
cards and for the ones you have, do not borrow against them
for more than about 50% of the maximum available.
- Do not apply for credit too
often. Every time someone checks your credit, it reduces your
credit score. If you go on line with the computer and apply
for credit with a dozen different companies, your credit will
not look good.
New York State Assemblyman Jose
Rivera of the Bronx has introduced legislation that will
prohibit insurance companies from using your credit for
insurance. Good for him. I think this practice should be
outlawed and insurance companies should only use your driving
record and claims paid as a basis for your rates. Pretty soon
you will have to give us a blood and urine sample before we can
give you a car insurance rate!
AT LEAST HE CAN TYPE
The new Mayor of Chester, PA got in hot water when citizens
found out who she appointed as chief assistant. Her new
appointee served 9 years for beating and stabbing (17 times) an
insurance agent to death on a dare when he was 14 years old.
After he got out of jail, he raped a 16 year old girl and served
another 3 years. The Mayor said he paid his debts to society and
besides, he can type 95 words per minute.
WORRIED ABOUT YOUR HEALTH?
I get a kick out of all the health nuts out there who are
consumed with what they eat and drink. Fish wasn’t healthy for
us but now it may prevent Alzheimer’s. Butter wasn’t good for us
but now studies show margarine is worse. We weren’t supposed to
eat eggs but now it is ok. Studies at Jikei University in Tokyo
found that people who concentrate on their health (no smoking,
eat right, get enough sleep, etc.) had 6% higher blood pressure
than those who don’t care so much. Eat different foods in
moderation, get some exercise, and don’t listen to nutritionists
or politicians. According to Chuck, that is how you will stay
healthy!
POLICE DOG VIOLATES CRIMINAL’S RIGHTS?
A drug dealer in Australia said his rights were violated by a
police dog during his arrest. It seems that Rocky the police dog
nuzzled the drug dealer’s crotch during the arrest and the drug
dealer thought that should be some kind of violation. Supreme
Court Justice O’Keefe disagreed saying: it was merely a “social
gesture” that dogs habitually do rather than an indecent
assault.
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