humdinger

Insurance credit scoring

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Please share your information concerning your policy rates increasing due to credit scoring, particularly Insurance companies that DO NOT USE IT. Please also indicate your state.

I bought my home about 1.5 years ago, at that time I found AMICA was the cheapest and did not use credit scoring, however since July 2005 they began using it. The results 10% increase in Auto and about the same for my homeowners insurance due solely to credit scoring.

So I've been shopping

Indiana Farm Bureau Insurance does not use credit scoring.

the link below shows each states laws concerning credit scoring

http://www.namic.org/reports/credithistory/creditlaws.asp

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No problems. My policy is up in two weeks, so I have have been getting quotes. Three companies have pulled my CLUE and credit reports, and each has given me a low quote despite a year old BK7. I have a feeling they see score only....

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Each insurance company has different criteria and.... it has to do with an INSURANCE score and certain characteristics of your credit. They are all going towards it because, It does, in fact predicted you likelyhood of filing a claim (note that I did not say having a claim)

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Call progressive and give them a projected start date two to three weeks in the future... your premium will drop about 10%. My insurance guy told me that.

Also, pay progressive in full for 6 months (use the rebuilder card :) and you will see another HUGE drop in your premium, in mine it was 15%.

good luck.

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Insurance industry has migrated to credit scores slowly over time. It's a new rehash of the old "redline" strategy.

Old school thinking said people that live in certain areas [ie "ghettoes"] are high risks for insurance. New school thinking says people with poor credit are high risks for insurance, and even so much as prone to filing frivolous (read: fraudulent) claims.

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They are all going towards it because, It does, in fact predicted you likelyhood of filing a claim (note that I did not say having a claim)

I think that's a crock of you know what. People come on hard times and all of the sudden they are no immoral and evil bad people. I know people who are well off that would be more likely to come up w/an insurance scam then the more humble less fortunate. This is just a nother way of punishing people who fall on hard times.

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They are all going towards it because, It does, in fact predicted you likelyhood of filing a claim (note that I did not say having a claim)

I think that's a crock of you know what. People come on hard times and all of the sudden they are no immoral and evil bad people. I know people who are well off that would be more likely to come up w/an insurance scam then the more humble less fortunate. This is just a nother way of punishing people who fall on hard times.

The way the insurance industry sees it, those who are less fortunate tend to file claims for every little thing because those same "less fortunate" people are up to their a$$ in payments (car, rent or house, likely in a job with no insurance, etc.) and the car gets dented up in the Wal-Mart parking lot, and the insured files a claim to get the car repainted.

I don't exactly agree with it and I stick by my theory that it's a rehash of the old "redline" strategy.

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I am not talking about scams here people. Nothing to do with immoral or bad people at all. Many of my policy holders are fine, upstanding citizens... the scams usually come out of the ones who are such tightwads they squeek when they walk. I am talking about filing a plain ol claim. That is it.

You are entitled to your opinion... but I see it everyday and I know from watching everyday for 5 years that most (notice I didn't say ALL) people that come back with an unfavorable score almost always have a claim within the first 6 months to a year. Most with favorable scores, I hardlyever hear from them again as far as claims go. When I do, they usually call and ask if they think they should claim it and see what the consequences would be versus just paying it out of pocket.

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I guess I just don't want to beleive that's the case because I'm probably one of the people w/ the not so good score! LOL. But the last thing on my mind is hitting up the Ins company for every little ding & scratch. I know what it would do to my rate in the long run. Grrrrr!!!!

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You are not like others.

Others look at insurance companies, banks, and such as deep pocketed piggy banks just ripe for the picking. As soon as they slip-and-fall in the parking lot and sue for enough money to buy that double wide and a big screen TV to watch Jerry Springer.

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If people with bad credit are more likely to file a claim then place more weight on how many claims that person has filed. People like me get the short end of the stick. (Bad Credit Person) I have never had a ticket/accident or claim and when my insurance co went to credit scoring my premium went from $92 to $127 and I have been with them for 5 years. The worst thing it makes no since to leave because since I have been shopping for new ins co the rates have came back the same.

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