Hee's the basic information. Y'all know what to do. Give 'em heck. They should be included in the consumer revolution:

State by state breakdown of the laws:
http://www.insure.com/gen/creditreports.html

general information:
http://www.insure.com/pro/pc/creditscoring1000.cfm

article "What your auto insurer knows about you:
http://www.insure.com/auto/whatknow.html

breeze

I AM STILL TOTALLY AMAIZED THAT INSURANCE COMPANIES STILL THINK THAT THERE IS A CONNECTION BETWEEN DRIVING AND CREDIT...

George, they think there is a link between credit history and claims history, i.e. people will file an insurance claim to get extra money.

Most agents don't like this either.

They don't just use the credit reports you are used to seeing - they have other reports - CLUE report, and a Fair. Isaac score especially for insurance companies, and others.

Our old friend Equifax is one of the big players in the insurance arena, with a separate company which caters just to insurance companies. They report things like non-payment of premiums, number and type of claims, and dollar amounts paid, etc. Knowing the mistakes we see day to day from Equifax, do you think these reports are all correct? They aren't - they are as error-laden as the regular credit reports.

I posted the links to give the information people need to get their reports, other than credit reports, and dispute that information if it is not correct. The CLUE reports, and Fair Isaac's separate scoring system provided to insurance companies, amounts to another form of credit reporting. Most consumers are not even aware of these reports, so of course they've never checked them to see if they are correct. Believe me, many of them contain erroneous information.

The state links tell you what your state law is, re the use of credit reports in insurance underwriting. Pretty vague stuff. Consumers can get educated and voice their opinions/objections to this system.

Even insurance underwriters don't realize how these reports are used. I worked for one of the big casualty insurers a few years back, and got to be friends with some of the underwriters (real people, LOL) - one day, one of the underwriters (who was a b%^&h when it came to rating and declining applications) had an eye-opening experience. Her daughter, who was in her 20's got declined for auto insurance from the same company!! The daughter had some late payments on her credit report, a couple of auto accidents where she was not at fault, and a previous auto policy she had just stopped paying on (lapsed for non-payment), when she found cheaper coverage. My friend was fit to be tied!!! She couldn't believe they were turning her daughter down. She was forced to see that she did the same thing to people every day!!

Any way, I was just posting what I thought might be helpful information for people who are interested in changing the system. You can't fight what you don't know about.

breeze

I have NEVER had a claim in twenty plus years, one ticket 7 mph over.
I have EXCELLENT credit, ALBEIT TOO MUCH...
SO IF I HAD BAD CREDIT...I WOULD BE PUNISHED WITH MUCH HIGHER
RATES...EVEN THOUGH I STILL WOULD NAVE NO CLAIMS, AND ONE
TICKET IN TWENTY PLUS YEARS...

THAT IS ILLOGICAL!!!

JUST MY OPINION.

I agree

breeze

Breeze, is there a way for the consumer to check their own information in clue?

Humm.. I should have read the articles before asking that. I see the place I need to call now. Interestingly one of those articles contains this quote:

"The Travelers Group will not write coverage if an applicant's credit report has what's called the "big five": Foreclosure, repossession, lien, claims judgment against you, and bankruptcy. Travelers actuaries have determined that applicants with any of the "big five" on their credit report file 30 percent more claims than people who don't have credit problems."

Now, I have Travelers auto insurance and have had it since August of 1999. I have a repossession (false) on all three reports, and a tax lien from the California Franchise Tax board. They did pull my reports (I can still see the inquiry) and they gave me an outstanding rate, even though my wift totaled my last car.

My agent knew about the accident and I was stunned when he quoted me the low rate I have and was even MORE stunned when my wife qualified for a "good driver discount". My agent told me he was able to write the policy that way because my wife's accident was not reported in clue.

I don't know about Traveler's. That site is pretty accurate - I have found occasional errors in information on there, though.

You can get your CLUE report. You cannot get the other one, put out by unFair, Isaac, & Co.

This may be the reason:

Nevada NAC 679B.725 States that insurers may not base adverse underwriting decisions, in whole or in part, on information received from an insurance-support organization (this may include credit reports), but may use it as additional supportive information for an adverse decision.

So, if they were going to rate you up or decline you for some other reason (like driving record), they may use these reports to support that reason, but if there is no other reason, they cannot use these reports against you. Good for Nevada!! They look out for their people.

breeze

"This may be the reason" refers to why Traveler's didn't rate or decline you. Sorry - that was a confusing way to put it. duh. I am a blond. ;)

breeze

Am I missing something? All the links take you to a website to get quotes.

It's profiling of the worst kind. Just like cops pulling over African Americans in lily white neighborhoods, airport officials detaining middle eastern looking folks for extra/additional security checks, these insurance outfits lump people with bad credit into the same mix as folks who have bad driving records.

Look at the date of the original post. It's over seven years old!!!!

Of course information changes as time goes on, and web sites as well.

When searching and trying to use tips or advice, take the age of the post into account.

What were you doing seven years ago? Is your computer the same?

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The Answer is 42!!

There are reasons insurance companies use credit scores. For one, most insurance companies offer payment plans. So they are, in effect, providing you credit.

Also, as someone mentioned earlier in the thread, some people with credit issues will file claims to try to get cash. They may make a claim for an accident and use the money for something besides fixing the car.

Insurance companies are regulated by each state's insurance commissioner. I think that if they couldn't provide a valid reason for basing rates on credit, they wouldn't be allowed to do it.

Also remember that insurance is an actuarial-based industry. They will have studies and statistics backing up most of their policies.

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The Answer is 42!!