www.blissfieldinsurance.com 225 West Adrian Street Blissfield, MI 49228-1285 (517) 486-4888
Please review our list of Frequently Asked Questions Below!
What is the MCCA and how does it work? The Michigan Catastrophic Claims Association is a private, nonprofit association established by the state legislature in July, 1978 to ensure that insurance companies would be able to provide the unlimited medical benefits that were mandated under Michigan's 1973 no-fault law. The MCCA reimburses no-fault auto insurance companies for medical claims exceeding $375,000. In other words, the insurance company pays for all medical benefits for someone catastrophically injured in an auto accident, but is reimbursed by the MCCA when costs surpass $375,000. The MCCA is, in essence, a reinsurance system established because of the requirement to provide unlimited medical coverage. What is the difference between repair and replacement cost? There are two types of homeowners insurance policies: replacement cost and repair cost. Replacement cost policies allow an insured to replace or rebuild a damaged dwelling to its original condition with new materials of a like kind and quality. Repair cost policies allow a policyholder to repair, replace or rebuild a dwelling to a condition and appearance similar to what it was before the loss or damaged occurred, using conventional materials and construction methods available without extraordinary expense. Repair cost policies are offered when the cost of replacing a dwelling would far exceed the market value of the dwelling. The best way for consumers to avoid confusion and anxiety is to know exactly what their policy stipulates before a loss. Why do my rates go up when I get a ticket? Studies have shown that people who get traffic tickets are more likely to have accidents in the future than motorists with clean driving records. Those who are more likely to have accidents, such as people who have tickets or at-fault accidents, pay higher rates through a surcharge. The law allows insurance companies to impose a surcharge for specific items only. What is the difference between insurance agencies and companies? Insurance companies are financial institutions that underwrite and sell insurance policies to consumers to protect them against financial hardship caused by accidental losses. Insurance companies vary by corporate structure, by the types of insurance they sell and by the marketing methods they employ. Many insurance companies market their products through a sales force of insurance agents. Insurance agents market insurance policies and facilitate sales on behalf of insurance companies. Independent agents are self-employed business people who typically represent two or more insurance companies and are paid on a commission basis. Why do auto insurance rates seem so high for younger drivers? Younger drivers are nearly three times more likely to be involved in a traffic accident than older motorists, according to statistics recently released by the Michigan State Police and compiled by the Insurance Institute of Michigan. Statistics also indicate that young driver crashes tend to be more deadly. About 15% of drivers under age 24 are involved in a traffic accident each year. By comparison, only 6% of 55 - 64 year olds are involved in a roadway crash annually. Younger motorists continue to have more accidents and more costly accidents. That is the reason they pay more for car insurance. A younger person who is the principal driver of a motor vehicle typically pays 40 to 200 percent more for auto insurance than older drivers. This surcharge is reduced as the driver grows older and is generally discontinued by insurance companies at or before the age of 25. What does a person's credit have to do with home and auto insurance? Independent studies have proven a strong connection between credit history and the likelihood of an individual filing a claim. People who use credit wisely are generally responsible in other areas of their lives. Research indicates that people with better insurance scores have fewer losses. Why do insurance companies use credit in its decision-making? To make fair and objective underwriting decisions, insurance companies need to have as much information as possible. Credit history provides a consistent and effective tool to evaluate risk that does not discriminate against any specific group of customers. Information such as a person's age, income, ethnic group, religion, gender or marital status is not factored into credit-based insurance scores. How does the use of credit benefit insurance companies? The use of insurance scores actually allows insurance companies to offer lower rates by providing discounts to consumers who have proven to manage their assets well. Two-thirds of policyholders have a lower premium because of good credit. What is an insurance score? How does it differ from a credit score? Insurance scores are different from credit scores or reports. Insurance companies develop insurance scores from credit history contained in credit bureau reports and use the information when making rating decisions. It reflects credit payment patterns, outstanding debt, length of history, types of credit and number of new applications for credit. Insurance companies consider only those items from credit reports that are relevant to insurance loss potential. Unlike a lender, an insurance company is not assessing a customer's income and debt; they are evaluating how customers manage their assets and credit granted to them. How is my privacy protected? Access to specific credit information is very limited. Most insurance companies only see the score, not the information that went into developing it. All companies must follow the Fair Credit Reporting Act state laws that apply to the use of credit information. These measures ensure there is confidentiality, accuracy and a legitimate need for the information.
The Michigan Catastrophic Claims Association is a private, nonprofit association established by the state legislature in July, 1978 to ensure that insurance companies would be able to provide the unlimited medical benefits that were mandated under Michigan's 1973 no-fault law. The MCCA reimburses no-fault auto insurance companies for medical claims exceeding $375,000. In other words, the insurance company pays for all medical benefits for someone catastrophically injured in an auto accident, but is reimbursed by the MCCA when costs surpass $375,000. The MCCA is, in essence, a reinsurance system established because of the requirement to provide unlimited medical coverage.
There are two types of homeowners insurance policies: replacement cost and repair cost. Replacement cost policies allow an insured to replace or rebuild a damaged dwelling to its original condition with new materials of a like kind and quality. Repair cost policies allow a policyholder to repair, replace or rebuild a dwelling to a condition and appearance similar to what it was before the loss or damaged occurred, using conventional materials and construction methods available without extraordinary expense. Repair cost policies are offered when the cost of replacing a dwelling would far exceed the market value of the dwelling. The best way for consumers to avoid confusion and anxiety is to know exactly what their policy stipulates before a loss.
Studies have shown that people who get traffic tickets are more likely to have accidents in the future than motorists with clean driving records. Those who are more likely to have accidents, such as people who have tickets or at-fault accidents, pay higher rates through a surcharge. The law allows insurance companies to impose a surcharge for specific items only.
Insurance companies are financial institutions that underwrite and sell insurance policies to consumers to protect them against financial hardship caused by accidental losses. Insurance companies vary by corporate structure, by the types of insurance they sell and by the marketing methods they employ. Many insurance companies market their products through a sales force of insurance agents.
Insurance agents market insurance policies and facilitate sales on behalf of insurance companies. Independent agents are self-employed business people who typically represent two or more insurance companies and are paid on a commission basis.
Younger drivers are nearly three times more likely to be involved in a traffic accident than older motorists, according to statistics recently released by the Michigan State Police and compiled by the Insurance Institute of Michigan. Statistics also indicate that young driver crashes tend to be more deadly.
About 15% of drivers under age 24 are involved in a traffic accident each year. By comparison, only 6% of 55 - 64 year olds are involved in a roadway crash annually.
Younger motorists continue to have more accidents and more costly accidents. That is the reason they pay more for car insurance. A younger person who is the principal driver of a motor vehicle typically pays 40 to 200 percent more for auto insurance than older drivers. This surcharge is reduced as the driver grows older and is generally discontinued by insurance companies at or before the age of 25.
Independent studies have proven a strong connection between credit history and the likelihood of an individual filing a claim. People who use credit wisely are generally responsible in other areas of their lives. Research indicates that people with better insurance scores have fewer losses.
To make fair and objective underwriting decisions, insurance companies need to have as much information as possible. Credit history provides a consistent and effective tool to evaluate risk that does not discriminate against any specific group of customers. Information such as a person's age, income, ethnic group, religion, gender or marital status is not factored into credit-based insurance scores.
The use of insurance scores actually allows insurance companies to offer lower rates by providing discounts to consumers who have proven to manage their assets well. Two-thirds of policyholders have a lower premium because of good credit.
Insurance scores are different from credit scores or reports. Insurance companies develop insurance scores from credit history contained in credit bureau reports and use the information when making rating decisions. It reflects credit payment patterns, outstanding debt, length of history, types of credit and number of new applications for credit. Insurance companies consider only those items from credit reports that are relevant to insurance loss potential. Unlike a lender, an insurance company is not assessing a customer's income and debt; they are evaluating how customers manage their assets and credit granted to them.
Access to specific credit information is very limited. Most insurance companies only see the score, not the information that went into developing it. All companies must follow the Fair Credit Reporting Act state laws that apply to the use of credit information. These measures ensure there is confidentiality, accuracy and a legitimate need for the information.
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