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Your Credit Rating And The Cost Of Home Insurance

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In New Jersey, and most states, your credit rating makes a big difference in the price of homeowners insurance.

The majority of insurance companies look at your credit score as part of their pricing for Home Insurance in New Jersey.  It may not show directly as your credit rating.  But most companies make credit history part of their process for reviewing your behavior as a home owner.

Insurance companies will charge more or less, sometimes much less, based on that combined scoring.  It can raise or lower prices by 50% or more, based on extreme cases.  We represent an insurance company that has 50 possible tiers, heavily affected by financial stability scoring.  That can really drop or raise your homeowners (or automobile) insurance price.  Others put less weight on those scores.

Two points:

1) We at GBW Insurance never see your actual credit score.  We do see the pricing tier to which that insurance company assigned you, but not the underlying factors.  The insurance company will give you an explanation of their general process; they have to in order to obey laws and regulations.

2)  Asking for a home insurance quote does not affect your credit score.  When a mortgage company pulls your credit score, that does go on your credit history.  An insurance company inquiry is a “soft” pull because it does not mean that you are taking on additional debt nor that you have done anything wrong with payments.  It does not have an impact beyond the price you would pay for insurance in that company.

A good credit rating can allow you to save a lot of money over time.

If you do have a bad credit rating, you can bring it up over time.  That’s important for a lot of reasons other than insurance prices.

You can eventually get your credit rating back to where it should be.  And in most states credit rating problems due to divorce or hospital bills can be changed for insurance scoring purposes.

If you have questions or need a quote, call GBW Insurance 800-548-2329.  Or click here to give us basic information to start a quick quote for you.

Insurance Agency choices

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Our thanks to Peerless Insurance ( for this piece, which is just shameless self-promotion for us.
Call us or go to our website ( for more info.

To get the lowest rates and the best coverage you need to acquire your business insurance from a local independent insurance agent rather than dealing directly with an internet based insurance company. It is not true that that dealing directly with an insurance company is the best method to get the lowest rates. In fact, there are many reasons why you should be using an independent insurance agent to provide your business liability and property insurance.

Reason #1: Local Independent Agents Save You Money

When you are dealing directly with an insurance company, you don’t have some one making sure you are getting the lowest possible rates as well as the correct coverage. This is important because your business insurance rates are not only based upon your type of business, sales, loss experience and other information about your business, but are also based on the operating costs of the insurance company. An independent agent will make sure you are dealing with the a low cost company.

When you work with a local independent insurance agent, they will look at multiple companies to make sure you are getting low premiums and the correct coverage. Local independent insurance agents are in business to provide their customers with the best possible coverage at the lowest possible rates, so in the end you normally pay less for commercial insurance.

Reason #2: Local Independent Agents Give You Better Service

A local independent agent offers you one-on-one service. You can call them directly without having to deal with annoying 800 phone directory options or computerized assistants. You can visit your agent in person or have them visit you as they are located in your local area. When it comes to business insurance, business owners need that attention. They need to know that if something happens that they can get immediate attention. It is very frustrating to need your insurance agent and not be able to get in contact with them.

Having your own insurance agent is important. When you choose to deal with a local agent, you get your own agent. Dealing directly with the company may mean you never have your own agent. You calls are answered by a call center and you speak to someone different every time you call. If you want focused attention and an agent that really knows your business then you want to deal with a local independent insurance agent.

Reason #3: Local Independent Agents Have Knowledge About Your Business

One part of liability insurance business owners may not think about is that insurance rates are based on where you live. When you get business insurance a local agents will know the area and your business insurance requirements. They will know what types of coverage you need and how much coverage you should get. They know from experience, not just from looking at charts that give averages. You can actually get a more detailed insurance policy when you work with an independent agent because the agent knows the area and what is needed in insurance coverage for your specific business.

The local independent insurance agent will provide many valuable services. They will visit your company, do a risk analysis and learn about your business so they can determine what are your specific insurance requirements. More important, when you have a local independent agent as your representative you you will have someone to represent your interests and fight for your rights in case of a claim or a conflict with the insurance company. If you are dealing with a website you will most likely wonder – “Who should I speak to when I am in trouble?”

As you can see, there is a huge difference between buying business insurance, commercial insurance or liability insurance from a local independent insurance agent versus directly from the insurance company. You will get a better insurance product and better service if you choose to do business with a local independent insurance agent.