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Loyola Insurance is one of few that require only basic personal information to approve auto insurance application such as name, address, professions, gender, and type of car. Credit score is available from credit report. However, the score is a result of elaborate calculation of many different variables for examples bill history, late payment, debt, the age of accounts, collection accounts, type of accounts, and number of accounts. All those information are personal financial data, but insurance companies have the rights to ask for them prior to policy renewal process or application approval/denial. Not every insurer does the same practice.

Loyola Insurance does not apply the same practice

Application approval is almost always certain without the needs for credit score information. Creditors and insurers that use credit score will run the data on statistical program to find other consumers with similar profiles. The program also offers a point-award system to determine the probability that the consumers pay their financial obligations such as debt or insurance payment.

Despite the controversies in the use of credit score as one of the requirements for auto insurance approval, the practice is legal in some states. While credit score is not the sole basis to determine whether or not an insurer gives a denial, approval as well as rate increase and decrease, it does not change the fact that credit score plays an important role in the decisions for those. From insurers’ point of view, credit score is valid variable to evaluate risk and therefore charge the consumers with the appropriate rate in accordance with the risk evaluation. Bad credit score means rejection or expensive rate, while good credit score leads to approval and less expensive premium.

Loyola Insurance does not use credit score for approval

For an insurance company, credit score helps determine the risk of loss, too. A policyholder with bad credit score has tendencies to file claims often and make late payments. Bad credit score often comes with the notion of financial difficulties, and insurers are reluctant to provide protections in this circumstance. Even when they approve the application, policyholders need to pay an extra charge for the protections.

Records of past accidents and traffic tickets are irrelevant, too
Every driver has the rights to acquire insurance and comply with the law, so there is no need to make the process difficult. As long as the applicants meet the basic requirements of age, own valid driver license, and have the financial power to pay for the premium, insurance products from Fred Loyola Insurance are always available for them.

Improve Credit Score
With a typical car insurance company, it is possible that one policyholder pays more premium rate than another only because he/she has worse credit score. The good thing is that credit score is not a permanent value, which means anybody can improve the score over time. Many factors affect the overall credit score as follows.

• Bills payment: one of the most significant factors is payment history. Late payments and collection accounts lead to a bad score, so it is best always to pay every credit card bill on time. Bankruptcy has greater adverse consequences on the overall score.
• Credit limit: it is not wise to spend and get close to the credit limit. Credit card holders need to pay attention to the amount of money they owe; the closer it gets to the limit each month, the closer they get to the bad credit score.
• Number of accounts: more credit accounts mean negative score. Every time a consumer applies for new credit, the provider checks for credit report.

Please understand that it can take a while until there is an improvement in the credit score. It can be weeks, months, or even years to notice the difference. On the other hand, every driver needs valid proof of insurance all the time, so it makes no sense to wait for the improvement and apply for insurance later. In such situation, everyone needs an insurance company that gives easy approval; this is where Fred Loyola Insurance come in.

Non-standard Market Insurance Company
Loya Insurance Company is a non-standard auto insurer specializes on high-risk drivers’ needs. A driver with bad credit score falls within “high-risk” category. If bad credit score causes a denial of insurance application, the FCRA (Fair Credit Reporting Act) requires the insurance company to give applicants the name and address (among other things) of the company that compiles the report. The applicants are also entitled to free copy of the report. Good credit record and ticket-less DMV report are not necessary to get Loya Insurance products.

A non-standard market insurance company tends to charge higher than typical insurer because of easy approval and the fact that its target consumers are high-risk drivers. The easiest way to reduce the price is to purchase only the state’s minimum coverage requirement which includes Liability and Personal Injury Protection. Please check with local DMV to figure out the state requirements. Each state also has its minimum coverage limit. Apart from the minimum coverage requirement, Loyola Insurance also offers optional coverage:

• Comprehensive: a financial protection against car damages due to non-collision perils such as natural disasters, theft, and vandalism.
• Collision: a financial protection against car damages due to road accidents whether or not the policyholder is at-fault.

As of 2016, Loya Insurance has more than 700 branch offices across Alabama, Arizona, California, Colorado, Georgia, Illinois, Indiana, Missouri, New Mexico, Nevada, Ohio and Texas.

Find additional info at Wikipedia concerning Loyola Insurance

One comment

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