Q: What are the benefits of using an insurance broker like CompassPoint ?
A: Simply put, CompassPoint represents more than just one company, so we are able to get you the best premiums for your insurance needs. We represent some of the financially strongest companies in NY.
Q: Does CompassPoint offer a variety of installment plans to fit your personal or company needs ?
A: Yes, CompassPoint can offer you a variety of plans. Please call us to discuss in detail.
Q: Should I have my insurance evaluated annually ?
A: Yes, CompassPoint, upon renewal goes through an annual renewal process that ensures clients have the best and most competitive insurance products available.
Q: Should I have all of my insurance with one brokerage ?
A: Yes, by having all of your insurance with one brokerage you can avoid gaps in coverage, and make one call when a claim arises.
Q: What are the benefits of an Umbrella Policy ?
A: Umbrella policies offer additional liability coverage above and beyond your other policies (auto, homeowners, professional liability etc) and is a relatively inexpensive way of extending your protection.
Q: What is the difference between Workmen’s Compensation & Disability ?
A: Workmen’s Compensation covers work related injuries while NY State Disability covers off-the-job injuries. Both are mandatory in New York State for anyone who has employees.
Q: What is an insurance score?
A: An insurance score is determined by reviewing a consumer's credit history. A carefully developed and tested computer model performs this analysis, and looks at information such as payment history, whether you have filed for bankruptcy, if you have bills with a collection agent, any outstanding debts you may have, and the length of your credit history.
Unlike a "credit score," which is typically used when you are seeking a loan, an insurance score is used to help insurance companies accurately assign the best price available for your policy.
When calculating your insurance rate, insurers typically group consumers into categories. For example, driving record and age are the most often used categories to help calculate the cost of a customer's auto insurance policy. Insurance scores are just another method insurance companies use to determine what you pay for your policy.
According to extensive industry and independent research, people with certain patterns in their credit history that result in a lower insurance score are more likely to have claims that need to be paid by their insurer. For instance, keeping your credit card balances below the maximum limit and making regular, on-time payments will result in a higher score. On the other hand, if you have a history of "maxing-out" your credit cards to their limits and submitting payments late, your score will be negatively impacted, meaning a lower score.
An insurance score DOES NOT take into account income, race, gender, religion, marital status, national origin, or geographic location. It only reviews your credit history.
Q: Why do companies use insurance scores?
A: Since insurance scores have been proven to be highly predictive of the potential for future losses, they help insurance companies determine the likelihood that a customer will file a claim, and thus allow carriers to set rates that are accurate and appropriate for each customer. This enables carriers to offer insurance coverage to a broader range of customers. What's more, many of these customers benefit from the use of insurance scores in the form of lower prices.
Insurance scores are used in the same way as other traditional underwriting factors. As a group, people with certain patterns in their credit history receive lower insurance scores and are more likely to experience a loss and file a claim. They are charged a higher premium to reflect that risk. This allows Travelers, and other insurers, to give better rates to consumers with higher insurance scores, who are less likely to file a claim.
Credit history helps predict the potential for future losses, but it is not the sole factor in determining the cost of your policy. It is one of several factors used to arrive at the best rate possible. The age of a driver and prior claim history are two other important factors that are also used to determine your rate.
Q: What information affects my insurance score?
A: In determining your insurance score, the following information is used:
- Payment history (Do you generally pay your bills on time or are you more than 60 days late?)
- Bankruptcy, foreclosures and collection activity
- Length of credit history
- Amount of outstanding debt in relation to credit limits (Are you "maxed-out" or are you well within your limits?)
- Types of credit in use (e.g., mortgages, installment loans)
- New applications for credit you have requested
Q: How can I improve my insurance score?
A: One of best things you can do is to make sure you pay your bills on time. That will help little by little with your credit history. You can also review how much credit you have. Are you up to your limit on a credit card? If so, that may also be considered an unfavorable factor. Consider how to reduce your debt without creating additional credit activity. Also, review your credit report regularly. Resources such as the American Insurance Association (www.aiadc.org) provide additional information about how to improve your credit history.
Click here for a list of some ways to improve your insurance score.
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