| Message |
Author |
|
 Posted: Mon Aug 16, 2010 9:22 am Post subject: Auto insurance without a credit check |
|
|
I'm really shocked to see so many auto insurers checking on our credit scores. I don't think they really need to do it for auto insurance. Do they? I'd like to go for a good insurance co. that offers coverage on the basis of other relevant factors e.g. age, driving record etc. Am I going the wrong way?
_________________
Register Now to have your Insurance queries solved. |
|
Palasdeathena
Guest
|
|
| Posted: Mon Aug 16, 2010 3:34 pm Post subject: |
|
|
| Quote: | | I'm really shocked to see so many auto insurers checking on our credit scores. |
And they will continue to do it as long as the people of your state (you) continue to allow your law makers to ignore this injustice.
[quote]I'd like to go for a good insurance co. that offers coverage on the basis of other relevant factors... [/bquote]I agree 100%.
I personally don't know which carriers use credit scores and which one's don't. Sorry. |
|
tcope
Forum Expert
Joined: 22 Nov 2006
Posts: 5193
Location: Salt Lake City, UT
285.25 Dollars($)
|
|
| Posted: Tue Aug 17, 2010 6:20 am Post subject: |
|
|
I'm just curious to know if it's your existing policy that's up for renewal! Or is it that you wish to go for a new policy?
_________________
AmPmInsure Blog |
|
sil
Community Writer
Joined: 30 Sep 2005
Posts: 483
89.47 Dollars($)
|
|
| Posted: Wed Aug 18, 2010 5:55 am Post subject: |
|
|
| Quote: | | And they will continue to do it as long as the people of your state (you) continue to allow your law makers to ignore this injustice. |
I'm sure many of us are wondering for how long it would continue. I'm also not aware if we can really do anything about it. My policy is up for renewal.
_________________
Register Now to have your Insurance queries solved. |
|
Palasdeathena
Guest
|
|
| Posted: Wed Aug 18, 2010 8:37 am Post subject: |
|
|
| There are a number of things that your insurer might do. They may increase your premium, shift your account with another company or may even get your insurance cancelled. Insurance companies in general consider your driving record along with your credit score. |
|
steven
Senior member
Joined: 02 Feb 2006
Posts: 1553
215.66 Dollars($)
|
|
| Posted: Thu Aug 19, 2010 6:39 am Post subject: |
|
|
See, all you have to do is to understand the reason why carriers check your credit before they issue a policy.
A carrier tries to co-relate between the risk that you pose to them and your financial stability. People with lower credit scores have been found to file more claims with the insurance carrier. |
|
roddick
Senior member
Joined: 05 Oct 2005
Posts: 962
143.16 Dollars($)
|
|
| Posted: Fri Aug 20, 2010 6:07 am Post subject: |
|
|
If you're looking for companies that don't use credit scores, you may check for companies' filing with your state doi. Also make sure that you check out a company's A.M. Best rating before you apply!
_________________
Insuranceguy.ampminsure.org |
|
Juanita
Moderator
Joined: 04 May 2007
Posts: 735
Location: Idaho
137.01 Dollars($)
|
|
| Posted: Fri Aug 20, 2010 9:29 am Post subject: |
|
|
You could move to California, where a credit report cannot be the basis of a decline for insurance. But then we'd get you on higher vehicle registration fees, higher sales tax rates, and higher income tax rates than about 48 other states.
_________________
CA-licensed P&C Broker-Agent and Life Agent. CA Insurance Lic #0596197. Now investigating insurance company abuses, and providing litigation support and expert witness services. Send me your questions, and I'll send you my answers. |
|
MaxHerr
Moderator
Joined: 29 Nov 2009
Posts: 4588
Location: Pomona CA
205.22 Dollars($)
|
|
| Posted: Sat Aug 21, 2010 10:15 am Post subject: |
|
|
| Quote: | | But then we'd get you on higher vehicle registration fees, higher sales tax rates, and higher income tax rates than about 48 other states. |
So you see how it really matters to all carriers to have your credit checked. It's not at all good to be on higher registration fees and tax rates.
_________________
Register Now to have your Insurance queries solved. |
|
anonymous00
Guest
|
|
| Posted: Sat Aug 21, 2010 3:31 pm Post subject: |
|
|
| Quote: | | So you see how it really matters to all carriers to have your credit checked. It's not at all good to be on higher registration fees and tax rates. |
That's a strange juxtaposition. |
|
BNTRS
Senior member
Joined: 05 Nov 2009
Posts: 828
13.02 Dollars($)
|
|
| Posted: Tue Aug 24, 2010 12:28 pm Post subject: |
|
|
| Quote: |
So you see how it really matters to all carriers to have your credit checked. It's not at all good to be on higher registration fees and tax rates.
|
I could not agree more. |
|
belongus3
New member
Joined: 24 Aug 2010
Posts: 3
1.23 Dollars($)
|
|
| Posted: Thu Aug 26, 2010 4:54 pm Post subject: |
|
|
The use of credit scores to determine a rate for insurance coverage has long been a controversial subject. Insurance shoppers question how their credit score could possibly play a role in whether or not they will file a claim while numerous insurers cite there is irrefutable statistical data to prove there is a direct correlation between an individual's credit score and the cost that insured will bear on the company in claims.
In December 2004, the Texas Legislature conducted a study on credit scoring. Their findings showed there was a strong relationship between credit scores and claims experience on an aggregate basis. However, credit scores, to some extent, may be reflective of other risk characteristics associated with claims. The report can be found at http://www.tdi.state.tx.us/reports/documents/creditall04.pdf |
|
esccornelius
New member
Joined: 28 Jul 2010
Posts: 11
Location: Piedmont, OK
2.55 Dollars($)
|
|
| Posted: Thu Aug 26, 2010 4:57 pm Post subject: |
|
|
| The Insurance Information Institute issued a statement on credit scoring. It is their position that insurance scoring works because it provides an objective and quantifiable means by which an individual's future performance under the terms of an insurance contract can be assessed. http://www.iii.org/media/hottopics/insurance/creditscoring/credit_pape r/ |
|
CHuddleston
New member
Joined: 15 Jun 2010
Posts: 16
Location: Fort Worth, TX
2.92 Dollars($)
|
|
| Posted: Thu Aug 26, 2010 6:33 pm Post subject: |
|
|
Gotta love the wording of some of those posts...
Bottom line, statistically speaking a person with a lower credit score is more likely to file a claim. This is _NOT_ the same as more likely to incur a loss... a _very_ important difference.
In other words, insurance companies charge a higher premium for people who are more likely to use the service they are paying for. Read that again. So basically an insurance company is charging more if they think people might use the the policy they are already paying for. Two people paying for the same promise, same risk but the insurance company thinks one person might actually call them on their promise to pay so they charge a higher rate.
Insurance companies should charge a rate based on the _risk assumed_ and the exposure... period. They should not be allowed to charge a premium because someone is more likely to use the product they are already paying for. |
|
tcope
Forum Expert
Joined: 22 Nov 2006
Posts: 5193
Location: Salt Lake City, UT
285.25 Dollars($)
|
|
| Posted: Fri Aug 27, 2010 4:28 am Post subject: |
|
|
| Quote: | | Insurance companies should charge a rate based on the _risk assumed_ and the exposure... period. They should not be allowed to charge a premium because someone is more likely to use the product they are already paying for. |
That's precisely the reason a person's credit score cannot be used as a rating criterion or as the reason for a decline in California.
_________________
CA-licensed P&C Broker-Agent and Life Agent. CA Insurance Lic #0596197. Now investigating insurance company abuses, and providing litigation support and expert witness services. Send me your questions, and I'll send you my answers. |
|
MaxHerr
Moderator
Joined: 29 Nov 2009
Posts: 4588
Location: Pomona CA
205.22 Dollars($)
|
|
