How much is Insurance after two PIP claims in Florida?

It might be hard to find auto insurance in Florida with PIP claims but we are here to help.  Blankit can provide insurance to individuals that have a prior PIP claim.  Our agency is now able to offer insurance to people with two pip claims. We are an independent insurance agency that provides insurance for many major  insurance carriers in Florida. If you need help finding insurance after a PIP claim please feel free to give us a call.

Why is it hard to find insurance after a pip claim?  PIP claims account for the majority of insurance fraud in Florida.  Due to the high rate of PIP fraud in Florida some insurance companies are now rejecting individuals with one or more pip claims.  Insurance companies sometimes consider individuals with a PIP claim high risk.  Even if the accident that resulted in a PIP claim is not your fault the insurance carriers can still hold this against you.

How long will the PIP claims stay on my record? Most insurance companies go back three years but in some cases it is five years.   When the PIP claims come off your record, you will most likely have more insurance options available.

What does PIP insurance cover? Personal injury protection coverage pays for medical bills and work loss if you are injured in an accident.  This type of coverage pays regardless of who it at-fault.  This coverage is required on every auto insurance policy issued in the State of Florida.

Why am I considered high risk because of my PIP claim?  Insurance companies consider you high risk because some people abuse PIP insurance with fraudulent claims.

How much does insurance cost after PIP claims?  In some cases your insurance rates can be higher after a PIP claim simply because most standard insurance carriers will not offer you coverage.  Insurance rates are also determined by other things including age, sex, location, credit and claims history.

Blankit High Risk Auto Insurance Quote

If you have any additional questions about getting insurance after PIP claims please feel free to give us a call at 1-855-692-5265

Why choose us if you have two PIP claims?

Blankit Experience – We have experience in insuring individuals that have PIP claims.  Our agency staff will also re-quote your policy every six months to make sure we are providing you with the best rate possible.

Blankit Statewide coverage – Our agency is available throughout the State of Florida and can write you a policy no matter where you live.  We use electronic signatures so you request a quote, chat with us, and purchase your new policy from any computer or smartphone.

Blankit Customer service –  We use one of the most advanced customer management systems in the industry.  Our agency understands that our jobs depend on keeping you happy.  If you have a problem, we will do our best to solve the issue.

Blankit’s Carriers – We have contracts with many major carriers that offer insurance to high risk drivers with prior claims.  Some of these companies include Progressive, Infinity, Gainsco, and more.

Get a CLUE and don’t get caught off guard on your Insurance Rates.

That new house looks perfect in every way, but prior damage and other issues may be lurking in the house’s history. These are details you’ll want to know about before signing the closing papers and being responsible for this house. You can check this history thanks to a free tool that lists insurance losses on a property going back seven years.

The majority of home insurance companies contribute claims history information to a database called the Comprehensive Loss Underwriting Exchange, or CLUE. Underwriters use the information in a CLUE report to rate insurance policies.

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CLUE and you

CLUE is a claims-information report generated by LexisNexis®, a consumer-reporting agency. The report generally contains up to seven years of personal-auto and personal-property claims history. An insurer may request a CLUE report when you apply for coverage or request a quote. The company uses your claims history, or the history of claims at a specific property, to decide if it’ll offer you coverage and how much you’ll pay.

Insurance companies match that information to their insurance underwriting rules, which vary from company to company. These same facts and figures can help a home buyer determine whether to buy a particular house and how difficult and costly it might be to get homeowners insurance on the property.

If you’re clueless about CLUE, don’t feel embarrassed. A recent survey found that 82 percent of Americans have never heard of the database or the reports associated with it.

What’s in a CLUE report?

A home’s CLUE loss history report provides insurance company names and policy numbers and any claim numbers. The report lists the dates of any claims, the loss types and amounts paid for losses, and it will tell if a claim was denied.

Weather-related losses, fires, theft, vandalism and water damage are some of the types of claims listed. But the report doesn’t indicate what part of the property or home was affected. You’d need to ask the homeowner for those details.

The report contains the following claim information provided by your insurance company:

Your name Date of birth
Policy number Date of loss
Type of loss Amount the company paid
Description of the covered property Property address for homeowner claims or specific vehicle information for auto claims

A report might be blank, for two reasons:

  • The homeowner did not make any claims in the past seven years.
  • The home was covered by an insurance company that doesn’t participate in CLUE.

Claims for the property under a different owner also won’t be included either, and therefore not considered when rated for insurance.

 

 What companies report

Insurance companies report all claims for which they:

  • Pay out money
  • Set up a file for a possible claim
  • Formally deny a claim
 LexisNexis advises insurance companies not to report claims information when you contact them to simply ask a question about coverage or your deductible.

How to get a CLUE

A free CLUE report can be obtained once a year from database giant LexisNexis. Requests can be made online or by calling (866) 312-8076.

Here’s the catch for a homebuyer: Only the owner of a property may access its CLUE report.

You must request the report from the owner of the home you’re considering buying. A savvy seller should obtain a CLUE report before showing the home, make several copies and have those available for potential buyers. Even a homeowner who’s not in the market to sell may want to get a CLUE report — to check for any inaccuracies.

Since the CLUE report is one of many pieces of information that an insurer might look at, what is in the report can influence your premiums positively or negatively, So if there are any inaccuracies, it’s important to get them corrected, just as it would be for your credit report.

  • You can check for inaccurate or unrelated information that could be making you pay higher premiums. If you find mistakes, contact LexisNexis Consumer Center at 888-497-0011. They’ll verify your information with the reporting insurance company and notify you of the results within 30 days.
  • You can add an explanation to an item in the report that will show in all future reports.

I have a CLUE. What do I do?

A consumer armed with a CLUE report should examine it for any claims that could lead to skyrocketing home insurance premiums. These include fire, burglaries and physical damage to the structure. If there’s a hazard on the property and someone fell into a hole, a claim would ensue. When the property has experienced multiple burglaries, that can mean that it needs an alarm system,

Claims might also indicate issues with the physical location of the property that can affect premiums, . If it’s close to the water or known to flood frequently, insurance can cost more.

A recent claim can have positive ramifications if the damage was addressed properly. For example,  if a roof was damaged by a windstorm and replaced by a new one, this would actually make the house more desirable to an insurance company.

A CLUE report is not an inspection

Potential buyers should use the CLUE report to let their home inspector know of any repairs that have been made so that the inspector can make sure the work was done correctly.

A CLUE is not a secret database, and it gives no score or recommendations, It just tells what happened in and outside the home. It doesn’t take the place of an inspection or disclosures from the seller. It’s an additional tool to evaluate the home and the cost of homeowners insurance.

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How to save money by improving your Insurance Score

For many people, the formula used to determine insurance rates may look like a mythical magic 8-ball type of voodoo. But in fact, there are highly-evolved formulas that help insurance companies identify the risks they are taking on when issuing your insurance.

You may have an identical driving score, the same number of tickets, driving experience, etc. as someone else, but a wholly different insurance score. That score determines how low or high your insurance premiums will be.

What is an Insurance Score?

Before you can understand how it affects your premium, you first need to know what is an insurance score is and how it’s determined. The truth is that it varies from one insurance company to the next. Each company has its own formula for determining your insurance score and how much weight individual components will carry in the formula.

Some of the factors that could impact your score include things like:

  • Credit Score
  • Collections
  • Length of Credit History
  • History of Late Payments
  • Outstanding Debt
  • Driving Record
  • Type of Employment
  • Miles Driven on Average Week
  • Value of Vehicle
  • History of Insurance Claims

What insurance companies are really interested in when it comes to determining your insurance score is how likely you are to file a claim. The less likely their formula determines you will be to have an accident or file a claim, the lower your premiums will be.

There are also factors, according to the National Association of Insurance Commissioners, that cannot be used in determining your insurance score. These include:

  • Race, color, national origin
  • Religion
  • Gender
  • Marital status
  • Age
  • Income, occupation or employment history
  • Location of residence
  • Any interest rate being charged
  • Child/family support obligations or rental agreements
  • Certain types of inquiries of your credit report like account review inquiries, employment inquiries, promotional inquiries from credit companies, etc.
  • Whether or not a consumer is participating in credit counseling of any kind
  • Any information not found in the credit report

It should be noted that this is the case for insurance companies operating in the state of Florida. Other states may have different policies and laws regarding what can and cannot be used in determining your insurance score.

What is a Credit-Based Insurance Score?

A credit score is a snapshot of your credit at one point in time. Credit-based insurance scores were introduced in the early 1990s and use certain elements of a person’s credit history to predict how likely consumer is to have an insurance loss, as research shows there is a correlation between credit characteristics (credit-based insurance scores) and insurance losses. According to FICO, a major company that generates credit-based insurance scores, approximately 95% of auto insurers and 85% of homeowners insurers use credit-based insurance scores in states where it is a legally allowed underwriting or risk classification factor.

How can an insurance company use your credit-based insurance scores?

An insurance company can only use your credit-based insurance score as one factor in its underwriting process. It will be considered with several other factors that vary by insurance type. For example, with auto insurance other factors could be your zip code; the age of the operators; the make, model and age of the car; and even the miles you drive annually. You can ask your insurance company if a credit-based insurance score was used to underwrite and rate your policy and which risk category you were placed in after you receive a quote.

What kind of information goes in to my credit-based insurance scores?

There are several different companies that create credit-based insurance score reports for insurers to use. FICO looks at five general areas it believes will best determine how you manage risk. This is the breakdown of what it considers and how much the information generally weighs in figuring your credit-based insurance score:

  • Payment History (40%) — How well you have made payments on your outstanding debt in the past
  • Outstanding Debt (30%) — How much debt you currently have
  • Credit History Length (15%) — How long you have had a line of credit
  • Pursuit of New Credit (10%) — If you have applied for new lines of credit recently
  • Credit Mix (5%) — The types of credit you have (credit card, mortgage, auto loans, etc.)

What is a Good Credit Score for Insurance?

The bottom line is that your credit score plays a larger role in your insurance score than you might expect. In many instances, a bad credit score can be the single most influential factor in providing you with a less than favorable rating – even if you have a clean driving record and no history of filing claims in the past.

How Can I Improve My Insurance Score?

The single most important thing you can do to improve your auto insurance score is to improve your credit score. That may take time, leaving you with higher than average premiums while you work to make your credit score better by doing the following things:

  • Keep your balances low.
  • Pay your bills on time. This includes credit cards, loans, and even your home utility bills as they can all have adverse effects on your credit history when late payments are reported.
  • Avoid allowing bills to go into collections.
  • Keep your credit accounts to a minimum.
  • Monitor your credit report annually to make sure there are no mistakes and that your information is accurate.
  • Maintain accounts for longer periods of time.

In other words, you must take control of your credit and change it for the better – one account at a time, if necessary. Another thing you should consider is avoiding maxing out your credit cards. You want the limit available on your cards to be high (meaning you have plenty of credit available that you aren’t using) and it is better to have a few accounts open in good standing – especially if they are long-term credit accounts.

Other things you can do to improve your auto insurance score that may be beneficial include things like taking defensive driving classes, driving safely and avoiding tickets.

You should also avoid making numerous credit inquiries in a short amount of time when you’re attempting to apply for auto insurance as this might be a red flag for some insurance providers.

The key is to take the time, now, to begin improving your credit score (and, consequently, your insurance score) so that you can get a better premium when the time comes to apply for auto insurance of your own.

Give us a call to learn more about how your insurance score impacts your premium and how to save money.