Your Credit Score: Insurance and Your Credit Score

I just finished the 9th and 10th final chapters of Your Credit Score written by Liz Pulliam Weston. I enjoyed this book a lot and just finished it after reading it off and on for months. This chapter is interesting as it explains to you how your credit score can affect you in real life with your insurance. It can be shown to cost you more money over your lifetime. Some examples this chapter explains to you is the correlation of how credit score histories are used to price insurance premiums. It gives many stats and loss ratios based on derogatory and collections in the past for consumers. It tells what goes into an insurance score, to me it looked pretty similar to the FICO score model. She explains how you need insurance for big events, and gives an opinion on what claims to make. She discusses the stigma simply calling something water damaged can have on a property to current homeowners and future homeowners. In the 10th chapter she discusses how to keep your credit score healthy. Paying off your credit card balances is a really a big part often discussed. She talks about what you can afford, having adequate insurance, and an emergency fund of so much in savings in case of an occurance like a job loss, etc. She will cover student loan, and divorce situations as it can affect your credit. I enjoyed the book and other seminars, and books on this topic.