The Debits and Credits of Insurance

When reviewing your insurance policy whether it’s for your home, auto or business, it’s important to understand the factors that can add or subtract to the premium.

One of the factors is the use of your financial credit or credit score to rate your insurance risk.  For those with excellent credit the impact can be very favorable but if your credit is not so shiny, it can raise your premium.

Fortunately Judge Fite Insurance represents a mix of carriers with some using credit to calculate your premium and others where it is not considered.  So no matter what your credit is we have a solution for your insurance needs.

Whenever the Texas Legislature is in session there is always a lot of discussion as to what to do about the use of credit by the insurance industry.  If this is a subject that you believe needs a change, you should contact your state representative, for they are currently discussing the subject.

Some of the other factors that can impact the premium are: age of home, location protection class, type of construction, past claims history, and past insurance coverage.

The age of a property can have a significant impact on the premium.  If the property is new then there can be a significant discount applied.  This discount will decrease over time as the home ages but it is still one of the largest discounts available.  If the home is older than 30 years, wear and tear starts to increase the likelihood of a claim.  Some companies just decide not to insure a segment of the market like older homes no matter how much they have been updated. That is how they avoid the higher risk.

Protection class is one of the least understood factors on insurance premiums.  For most property owners in the city a change from 1, 2, 3 or 4 will have little impact.  But if you go out to rural areas with no fire department or only voluntary fire service then a rating of 8, 9 or 10 can have a significant negative impact on your premium.

Finally, the impact of having past insurance coverage or only having the barest minimum  can influence who will cover you, the rates and even the different levels of coverage they will offer you whether you are looking for home, auto or commercial insurance.  There are many insurance companies who will not offer you coverage if it has been more than 30 days since you let a policy laps or purchase something with no insurance.

The above examples are just a few of the reasons why you should select an Independent Agent like Judge Fite Insurance Agency versus an agency that only represents one insurance carrier.  We have over 30 appointments with insurance carriers and a service level to provide you more options and competitive quotes.

For more information about insurance for you home, investments, vehicles, or business, contact Judge Fite Insurance Agency today at or 214-446-2572.

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