Incidently, I just opened an auto policy with usaa and they ran a credit checkon me without notifying me. The inquiry shows up as choicepoint for me on experian. After many phone calls and much ado, it turns out they only did it as part of a STUDY to determine if they are going to start using credit scores. I said, gee thats great now take it off my report! If anyone has the same trouble, I recommend talking to a Mr. Blair Leatherwood at 1.800.531.8111 ext 46149 I believe his title is head of western underwriting. I got the run around until I talked to him. They are supposedly going to write a letter to Experian and cc it to me...we'll see... Also, isn't this an example of non-permissable purpose--they didn't notify me and the purpose was not for the extension of credit or insurance...
In the latest USAA Aide (Monthly Magazine) there is a two page article on credit and insurance. The article made it sound like they were already using credit scores. I have not seen them pull my credit or change my rates recently (but am on the lookout). I have been with USAA since age 16, so have 18 plus years with them and have always been satisfied.
Just so you know I went through that whole scenario a few months ago and after calling EVERYONE (choicepoint and USAA) it is coded as EU, and it did not have ANY affect on the score. I would gladly give 10 inquiries to keep USAA, best insurance price around.
I would really like to see the research that shows the relationship between credit scores and insurance risk. If the insurance companies (not just USAA) have not been pulling reports in the past how was the research done!!
I agree with you that they are a great company, this is the first thing I've ever got the run around with them. What do you mean by it was 'coded EU'? It showed up on my hard inquiry section of Experian, and I didn't see any additional info that would make me think it wouldn't drop my score.
DON'T YOU DRIVE BY YOUR CREDIT REPORT??? I offered to do a COUNTER-SURVEY... IF 90% of the population of USA DRIVERS have a "CLEAN" driving record...what do they need a credit report for??? ANSWER...TO "JACK" THE RATES!!!!!!!!!!!!!!!!!!!!
Has anyone seen the recent "Power of Attorney" agreement being sent out by USAA? They are asking that you sign a power of attorney, which will not hold the Directors and Board members responsible for the actions of USAA. Also, it states that they will act on your behalf and handle any insurance claims that you may have. Sounds FISHY to me? anyone else feel the same way? I havent signed it yet.
Huh? What kind of power of attorney? Does it say what it's for? I have had USAA for years, can't imagine why they need power of attorney. But nobody can touch the rates I have with them, not even GEICO.
Its a form titled, "Limited Power of Attorney" Form number 389(14) Rev 2-02 It is too long to type. I have never filed a claim EVER, so I have no idea, why i am receiving this form. They say that, "If you do not complete the form and return it within 20 days, Failrue to do so, will result in the cancellation or nonrenewal of your policy" I have a couple of friends at the courthouse, that I am going to run this by. It doesnt seem right to me!
That's my question - what's it for? I can't imagine. If/when I get one, I will send it to my lawyer to review.
yeah, I would let my insurance lapse, depending on exactly their paper work states. A power of attorney(or limited power of attorney) can be a very powerful document. Essentially it allows them to act in my place for various functions. My interests aren't the same as theirs and sometimes are directly opposite. So, why would I have them act as my agent with a conflict of interest?? Why are they the only insurance company asking for a power of attorney? I like the company and think its a great company, but they can still make mistakes, like the illegal inquiry they did on my credit report(which should be cleared up soon).
Two things... 1. I know your credit report has nothing to do wtih your driving. My impression was that they ran a credit check to see if you qualify to pay monthly. If you don't, then you have to pay your premium 3 or 6 months in advace. My friend ran into this problem. She found a place with cheap rates but since her credit score was 515, they required that she pay upfront for a 3 month premium. She couldn't afford to do that. My rapist insurance company ran my credit and determined that I was eligable to pay monthly, for a $10/mo service charge. To save myself $60, I just paid the 6 month premium. If I would of known at the time that there was a $10 service charge to pay monthly, I just would of told them to bypass the credit check and I'll write you a check for the full amount. 2. No matter what kind forms or power of attorney your insurance sends out, DO NOT LET YOUR COVERAGE LAPS! It would be so sad that the minute your insurance laps, you get hit by an uninsured motorist (which happend to my friend last night by the way). So, investigate it and if it isn't right...switch...but don't let the coverage laps!
that's strange...i work in the insurance biz (let's get this straight...i HATE the whole idea of insurance score...) so I have been doing some investigating about this...most insurers use Choicepoint as a vendor and i was told that there inquiries do not result in "hard" or "soft" hits...i am perplexed... thanks, kris
I have had insurance and credit cards with them for 3 years prior, and have never been late, so I doubt that it is about monthly payments. The person I talked to told me point blank that it was part of a study to decide if USAA was going to use credit scores. And as far as letting my insurance lapse, I mean to replace it with another company if it is not agreeable.
"They" don't tell us everything they know about it. The only way to tell is to know your scores before and after, and under controlled conditions - no other changes on your reports at the time, and see what happens. Someone posted yesterday about how his score went up when two of three mortgage inquiries were removed - they were all in the same day. FICO says multiple mortgage inquries within a short time period don't affect you score - IMO, this situation proves that they do.
