Well let me clarify.... I work for a very large insurer that uses credit. We have been told by Fair Isaac that insurance inquiries do not affect your score according to their formula and that most financial institutions and credit issuers use their own version of the score that excludes insurance inquiries. IOW, more likely than not, even if you see it on your credit report, it is not actually being counted by the institution that is evaluating you. I can only relay what the FICO people tell us <g>
Exactly!! I have a copy of the Georgia Ins Dept's hearing on insurance scoring, and the questions posed there to the Fair Isaac rep were the hard ones we ask. The Fair Isaac Rep stumbled and bumbled and did not answer the question of whether these inquiries affect scores. They nailed her to the wall. If you want to read it, email me and I will send it to you. I would like to shop a lot of things (not my insurance <g>) but I won't because when they got through my score would be in the basement. If that's what they do, then that's what they get - not my business. I just keep what I've got - it's cheaper than having my score tank and paying high interest rates.
breeze I signed up for only 6 months with Progressive. Will they put another hard inquiry on my report assuming I renew the current auto insurance contract when the current one expires?
No telling! But they can anytime they want to. Hope it is like credit card companies - they will be decent enough to you to give you an AR instead of a hard.
Re insurance underwriting and credit score as a predictor. More and more states are telling Fair Isaac and the insurance companies they have to prove it or they can't use it. Far more people are being charged higher rates for no other reason, than are having their rates lowered because of scoring. Not claims, not cancellations, just credit. Fair Isaac doesn't want to have to prove it. They say it's proprietary. The Insurance commissioners are listening to consumers, so make your voice heard.
breeze, I would like a copy of the report. TX is going to hold hearings soon on this issue and the head of the State Insurance Board is soliciting comments and real life examples. I would love to have Farmers Insurance try to explain why they suddenly care in 2001 and 2002 what my credit score was, and all the years that I paid them premiums from 96-2000, they didn't care about the BK when they rated my insurance. I have been a Farmers customer for 20PLUS YEARS, and was always rated in the lowest cost category until five years ago. I had a fender bender, and got sent to mid range category. I feel royally taken advantage of. Sorry for this ???, but I am a newbie. how do I get you my email address without posting it to the world ( no offense, "world") or how do I send responses just to one member of the forum? Thanks for the postings. I enjoy the input that you share. Ms TX
State Insurance commissioners: http://personalinsure.about.com/cs/...rawl_1&terms=+"state+insurance+commissioners" And don't forget your elected and government officials: Contact your local Reps constituent office http://clerkweb.house.gov/mbrcmtee/mbrcmtee.htm Complain to you attorney general http://www.naag.org/ag/full_ag_table.cfm
Yes, credit is a huge factor. Being that 70% or better of credit reports contain errors, it is just a reason to justify higher costs. Insurance companies pull in billions of dollars profit, but when something comes up so they have to cough up some of those profits, they pull out. Look at Florida after Hurricane Andrew, or Texas since the mold thing. Health insurance will deny claims based on the fact that less 10% of the claims being denied will ever be challenged. HMOs will let people die in pursuit of profits. Insurance companies control the vast majority of wealth in this country, and have a stranglehold on EVERY consumer. Gib
Click on a members name in the thread (where the name is in blue) and it will take you to a page where you can e-mail them if their e-mail is turned on. If the members e-mail is turned off, it'll say you cannot e-mail that member.
My email is on. If you want a copy of the report, click on my name, you will see the link to the email feature. If you don't email me, I have no way to send it to you.
Oh wait, no. You can get it anonymously - it's in my briefcase on yahoo. http://briefcase.yahoo.com/serenitybreeze in the "credit letters" folder - it's titled GA_INS_HEARING.doc or something like that. Right click and save to download it. Help yourselves. We had a big discussion about it when it was first published on the web.
LOL, I did George. I said "I don't want no stinkin' insurance! I was just looking at your website!!" They said tooooo bad, so sad. I guess I could have taken up it up a few notches, but I didn't have time.
http://us.f1.yahoofs.com/users/3e2b8a3d/bc/Credit+letters/GA_hearing_ins_scores.doc?BCZj538ASt6MLYbF is a 4 kb blank word document when i open it.... i might be doing something totally wrong
if any one has any suggestions on how to possibly get any kind of better deal by shopping around, and not incurring XXX number of hard inquiries, i would dearly appreciate the advice. Don't give them your SS# or name. Scoring for credit is bad enough using it for insurance is an even bigger Rip Off!!
Speaking of auto Insurance ______------------_____________The purpose of insurance is to cover unusual risk. Since the act of exceeding an unreasonably low limit is hardly unusual or dangerous, the risk assumed by the insurance company is nearly non-existant. Therefore, any surcharges issued for speeding tickets are almost pure profit. The profits that an insurance company generates from speeding ticket surcharges allow them to purchase more radar and laser guns to give away free to law enforcement agencies. This allows the police to ticket more people, which in turn ensures a constant flow of revenue to the insurance company. The units will perform their revenue- enhancement duties for 3-5 years, having been paid for in less than one. Thousands of speeding tickets are issued by traffic law enforcers who don't know or care how to properly operate radar, VASCAR, or other speed-measurement devices. They are ignorant of proper operating procedures, performance characteristics, and common malfunctions or errors. Traffic ticket fines are the cash cow of the court system. No other class of "crime" is as profitable for state and local governments as is that of traffic tickets. Traffic courts cannot be fair and unbiased when their finanacial welfare depends on traffic fines. It is not true that writing more tickets will result in fewer accidents. A 1995 Memorial Day ticket-writing binge in Connecticut resulted in a 67% increase in accidents over the same time period in the previous year. The federal government paid $750,000 to the state for that. Many speed limits are deliberately set well below the prevailing speed of safely-driven vehicles. Doing so does not slow traffic but it does make a greater number of motorists eligible for a speeding ticket they don't deserve. There is no connection between receiving an occasional traffic ticket and the likelihood of being in an accident. Therefore, there is no justification for charging a person more for auto insurance just because they were convicted for a traffic violation. Trivial or concocted traffic law violations are frequently used as an excuse to stop, detain, and search persons for whom the police have no otherwise legitimate reason to do so. "Probable cause" or "reasonable suspicion" are inserted after the fact and only if the motorist lodges a formal complaint. A large proportion of the stop signs erected by local governments are illegal and in violation of state traffic regulations. They know that people don't stop for them since the intention is to use the signs as speed control devices. This proliferation of stop signs merely increases the number of motorists who can be cited for failing to stop when there is no reason to. The best protection against the "good ole boy" system where the judge, district attorney and the arresting officer are on a first-name basis is the jury trial. Jury trials are time-consuming, expensive, and diminish the profitability of the traffic ticket system. Therefore, state-by-state, the right to a jury trial is being incrementally denied to traffic ticket defendants, all under the guise of being more fair when actually it is less. Only a small fraction (about 2%) of all traffic tickets are seriously contested. The vast majority of these contested tickets are dismissed or the defendant is given a significantly reduced penalty. If just 10% of the people who received citations fought their tickets, the entire system of government extortion would collapse within a matter of months.
No, you're not doing anything wrong. It isn't there. Sorry. Here's the link to the GA insurance site - you can get it there - it's the pdf file http://www.gainsurance.org/CONSUMER/CreditScoringHearings.asp
***************************************quote: -------------------------------------------------------------------------------- Originally posted by schweb You are incorrect. While you can get a quote using fake information...more than likely it will not be at all accurate. Credit is a HUGE rating factor now and I've seen it affect people's rates by hundreds of dollars. -------------------------------------------------------------------------------- Schweb has seen the scoring rip off first hand! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes, credit is a huge factor. Being that 70% or better of credit reports contain errors, is it a reason to justify higher costs.? NO It's an excuse to fleece the masses! Insurance companies control the vast majority of wealth in this country, and have a stranglehold on EVERY consumer. Right Gib and the bankers are right in there with them! Gib
