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[timba]

Hi Everyone,

Lot of factors determine motorcycle insurance premiums:
 vehicle type, accessories, location, driver age and history...

When I told my agent I was considering shopping around for lower premiums without losing any coverages,
 she said they wanted to keep me as a client and suggested a 'credit based policy'.

If you have a good credit rating, use it to lower your auto, motorcycle and homeowner premiums! They may have
to issue a new policy, but your saving $$$.

Hope this works for you.

[sportygordy]

is ths somthing all insurance companies do?

[LRebel]

is ths somthing all insurance companies do?

Yes, all insurance companies already use your credit information in some form or fashion (in most states) to determine your rate or in some cases, whether or not they will even insure you. 
Not all companies see your credit report or credit score.  If not your credit score, they get an insurance score that is largely determined by your credit score.  Some companies determine your insurance score in house and some companies use a third party for the insurance score - Fair Isaacs is one of the companies used by several insurance companies.

Your credit score is more important than ever.  Besides using good sense when it comes to credit, it is a good idea to review your credit report periodically to make sure inaccurate information is not effecting your credit score.

[hunter]

I have Geico and they do that for all their clients.

[LRebel]

With most insurance companies, the credit score - or insurance score can either help or hurt.  The better scores typically get a discount - for the folks in the middle there is usually a zero effect - and then the folks with the lower scores receive a surcharge.

The credit/insurance score is just another way insurance companies segment their book of business.  Segmentation is one of the ways insurance companies try to attract the better customers by giving deeper discounts to those that "statically" have fewer claims.

[Hugh Janis]

With most insurance companies, the credit score - or insurance score can either help or hurt.  The better scores typically get a discount - for the folks in the middle there is usually a zero effect - and then the folks with the lower scores receive a surcharge.

The credit/insurance score is just another way insurance companies segment their book of business.  Segmentation is one of the ways insurance companies try to attract the better customers by giving deeper discounts to those that "statically" have fewer claims.

How about those that have "actually" fewer claims?  I've been an auto or motorcycle policy holder for over 25 years and other than 3 car wind shields I've had NO claims.

[LRebel]

How about those that have "actually" fewer claims?  I've been an auto or motorcycle policy holder for over 25 years and other than 3 car wind shields I've had NO claims.

Statistically, those with the better credit/insurance scores have fewer claims (key word:  Statistically) 

Most insurance companies give an accident-free or claims-free discount.... or surcharge when you have a claim (samething either way).  Most companies only surcharge for at-fault accidents --- no surcharge for fault-free accidents and comprehensive claims.

[HarleyRider2004]

How about those that have "actually" fewer claims?  I've been an auto or motorcycle policy holder for over 25 years and other than 3 car wind shields I've had NO claims.

Jester-

You are receiving a better rate.  I would bet you are receiving good driver/claim free discounts.  Ask your agent how much your insurance would go up if you file a claim...and unless you have some type of accident forgiveness in your plan...you will see how much you are saving.  I get this all of the time from people as a Insurance Agent.  I have people that sit down and get pissed off because their insurance will go up if they file a claim, and the next sentence is "all of these years I have been paying all of this money and never filed a claim."  Well think about it...all of those years you would have been paying more money if you had filed a claim.  It is how the discounts work...claim free or not.     

L Rebel there are some insurance companies that do not use credit at all.  But for the most part you are dead on regarding this issue.  Insurance companies use credit to tier.  In some states they are even allowed to use credit to deny or reject you coverage.  Most states allow credit to offer larger discounts, in MD it can be used to give you a discount on your auto insurance but on renewals can only improve your rating.  This means they can't raise your rate due to credit.  As far as homes they introduced a house bill that killed credit in homeowners insurance in MD back around 2003 or so.  Just about everyone rates went up.  VA still uses credit on homes and for better credit customers it is a huge benefit.  The credit issue is different state by state...because insurance is regulated by the state. 

As far as how well this type of classifying works...in my opinion it is the absolute single best indicator other than CLUE/MVR (driving record and claims) reports that is available.  People in higher IS (insurance score) tiers generally have more cars, newer cars, newer homes, second homes, more toys, and guess what pay their bills on time.  If they have a small fender bender...you do not hear about it because not wanting to file a small claim...they self insure with the highest deductible possible.  So they are better clients (more policies) with larger accounts (higher premium)...makes sense to me.