Interesting on Insurance

Cant seem to post here.

Dear Ben,
At its foundation, insurance pricing is quite simple. Insurance companies are concerned about risk of future loss. Low risk means low prices. High risk means high prices. Simple.

In the real world, things get complicated because companies use so many different factors to predict risk. These “risk predictors” are based on the statistical analysis of large groups of people sharing the same characteristics.

For example, statistics show that drivers with speeding tickets are more likely to have accidents than drivers without. Drivers with tickets represent greater risk and, therefore, pay more for auto insurance.

Similarly, statistics also show that home owners with recent claims are more likely to have additional claims before home owners with no previous claims will have their first. Therefore, home owners with prior claims experience represent higher risk and pay more for home insurance.

It’s all factual statistics. And every kind of insurance - auto, home, life, etc. - uses some set of risk factors to determine eligibility and price.

Naturally, insurance companies are constantly trying to improve their ability to predict risk of future loss. The better they get at it, the more competitive they can be . offering lower prices to people who are statistically least likely to have future claims and charging more for people who are statistically most likely to have future claims.

How you Handle Money Becomes a Risk Predictor

[FONT=‘Times New Roman’]To that end, most insurance companies (92% according to a recent industry report) have recently added another “risk predicting factor” to their analysis of auto, home and other personal lines of insurance . It’s the level of financial responsibility you demonstrate.

Why have they done this? Because statistical analysis shows a connection between financial responsibility and insurance claims. And, like I explained above, predicting risk is all about statistics.

Oversimplified, a statistical analysis of financial responsibility shows that people who pay their bills on time and have good credit tend to have fewer claims and smaller losses - for both auto and home policies. At the other end of the spectrum, people who demonstrate the worst financial responsibility also tend to have the worst claims experience.

Therefore, people who demonstrate the best financial responsibility represent lower risk and will tend to get lower insurance rates than average. And people who demonstrate poor financial responsibility represent higher risk and will pay more for insurance.

The direct impact your history of financial responsibility will have on your insurance rates will vary from company to company and situation to situation. But the lesson is clear, if you pay your bills on time and maintain a good credit history, you will most likely reap the benefits of lower insurance prices, too.

There was contact info and a website at the bottom of this and every time I submitted it said server not found? What is up with that?

We’re here to help! So if you have any questions or concerns, give us a call at 615-329-8121, Monday thru Friday between the hours of 9-5. Or if you prefer, you can reach us via the internet, 24 hours a day at


Tim King
King & Associates Insurance
33 Music Square W, 108A
Nashville, TN 37203

P.S. Need some extra cash? Well, with our referral program, you can receive free gas cards! Tell your friends and family to call King & Associates and mention your name, and your gas card will be on its way–regardless of their decision to do business with us! Now we’ve made it even easier on you. Log onto our website at and click on Referrals for more info.

It works when I take all the links out of it, contact, website info , etccc

Oh, nooooooooo. Don’t let Jim Bushart see that referral rewards marketing.:smiley:

I thought about that too. He said since the referral rewards started business highly increased!