- Auto Insurance -

Discussion in 'Credit Talk' started by Larry, Jan 18, 2001.

  1. Larry

    Larry Guest

    I thought about waiting, but then I realize that I could ask you guys this question.

    Does auto insurance shows up on credit reports. I purchased a Progressive policy.

    Thanks !
  2. bjoe

    bjoe Active Member

    The payments do not show up. However, I checked progressives rates on their website, and low and behold, that mistake cost me an inquiry on my CR.
  3. kim

    kim Well-Known Member

    Progressive certainly does show up on your report. Had i known, I would have never applied, especially since their rates were exorbitant compared to other companies.
  4. sam

    sam Well-Known Member

    RE: only as an inquiry.

    They pull an inquiry to determine if they let you pay over a year. Most insurance companies check ur credit to see if they will finance you for payments.

    Progressive is not bad, for the right people.
  5. Trenk

    Trenk Guest

    RE: only as an inquiry.

    Progressive is the one bad mark on my report (other than BR) they applied a payment for a fee to my policy then sent the fee to collection, I paid it a second time and now they have no record of payment.. I really don't want to pay them a third time..
  6. Larry

    Larry Guest

    RE: Let me try again.

    Maybe I was misunderstood.
    I knew Progressive was going to pull my cr and hand me an inquiry... what I meant to say was: Is it going to appear as a tradeline in my cr? like a revolving acct/or installment acct.

    TIA -Larry-
  7. Larry

    Larry Guest

    Kim wrote:
    Progressive certainly does show up on your report. Had i known, I would have never applied, especially since their rates were exorbitant compared to other companies.

    Could you be more explicit? What other companies?

    Thanks bjoe ! I failed to read your post throughly.
  8. kim

    kim Well-Known Member

    State Farm, GEICO, Allstate. They were practically double any other company I checked with. I don't live in a crime ridden neighborhood, cuz of course they go by zip code. And I don't drive a SUV. For me their prices were ridiculous and I don't recall getting a qoute from other companies and they claim they do.
  9. Larry

    Larry Guest

    Thanks Kim, BUT...............

    When I was in the business of purchasing a policy, I got quotes from State Farm, GEICO, Allstate. They were my first choices. Progressive however, came up with the best quote.

    It was a no brainer. Of course it also pays to have a broker in the family. ;)

    MOCAFEEN Guest

    RE: - Auto Insurance -FYI

    Hi, all. I don't post here much because I don't have the time lately, but I do read through the board here regularly, and I'd like to chime in on this issue. I own a small business, and what we do is take down people's info and then get them a variety of insurance quotes from different companies. Therefore, I have a little knowledge of this matter. The fact is, at least in AZ where I reside, the companies who do *not* run a credit report to do a quote are becoming few and far between. And it isn't just done to decide whether they will finance your policy. Your credit score - and they all have different scoring systems - decides what rate they will offer you and in many cases whether they will insure you at all. Progressive does it, Allstate does it, and so do American National, Prudential (only to qualify for their preferred markets), GMAC/Integon, Hartford, A.I.G., and Windsor. Farmer's and State Farm don't so it...yet. These are just a few off the top of my head. Unfortunately, if you use a service like ours, or if you call an independent agent or broker for quotes, you can end up with five or six inquiries just for your shopping trouble. This isn't the agent's fault, either; he literally cannot get a quote for you from each company he represents without putting your SS# in separately for *each one*. I'm against it, as are most of the independent agents and brokers I know, and personally I tell people to contact their legislator when they complain to me about it. I think it's a form of "red lining" and the reasons given by the insurance companies don't ring true. First they claimed it would help their loss ratios, and it didn't. Then they claimed that even if people with better credit didn't have fewer accidents, they were better clients in that they paid their bills and "stuck around". While this argument might sound okay, one has to remember that for years insurance companies have already based their rates for people on the person's previous insurance history. Therefore, they really don't need your credit report. If you've kept continous insurance for the last ten years there really isn't any reason to believe you'll change your habits now, regardless of credit. It's just good, old-fashioned snobbery, and that's all. I have watched this trend grow for the last five years or so, and I've not yet seen any insurance company improve their loss ratio or their retention rates by running credit scores. What I *have* seen is insurance companies acquiring access to more and more personal info about their customers. Of course a certain amount of this is necessary, but I often ask myself where it will end.

    Sorry to blather on, but I think this is something people should be informed about, and I don't believe enough are. That's just my tow cents. :)

  11. marci

    marci Well-Known Member

    RE: - Auto Insurance -FYI

    Thank you for your insightful post. I agree that this is a very unsavory new method of "redlining".

    Yet another reason to disclose credit scores, score requirements, and regulations of how and when they can be used.

    I am writing my congressman.

  12. kim

    kim Well-Known Member

    RE: - Auto Insurance -FYI

    Thanks for the confirmation of what I figured anyway. Not only to people in certain zip codes get higher rates, but now they want to know what other bills we pay or don't pay. I think i'll stick with my agent, for the simple fact he drove 30 miles to my job to look over my car, receive the deposit and deliver my insurance cards.
  13. J. Edgar

    J. Edgar Well-Known Member

    Pulling Credit Report to Rate

    As screwed up as automobile insurance is in Massachusetts, at least they are not allowed to pull credit reports or scores to determine what your insurance rates are going to be.

    The determining factors in your rates are your zip code (where you live), your driving record, and the type of vehicle you are insuring.
  14. Momof3

    Momof3 Well-Known Member

    RE: Let me try again.

    I have had several different firms over the years and they have NEVER reported my payments to credit reports.

  15. GEORGE

    GEORGE Well-Known Member

    RE: Let me try again.

    No...payments won't show on credit report.

    Insurance companies never had permission to access your credit report, they just used zip code and your driving record...


    I asked TRANSUNION how the credit report has any berring on how you drive...they didn't have an answer for me...
  16. GEORGE

    GEORGE Well-Known Member

    RE: Let me try again.

  17. the other

    the other Well-Known Member

    kim - who do you go thru?

  18. marvin

    marvin Well-Known Member

    RE: Let me try again.

    I think the reasoning is that they believe people that are irresponsible with their credit are also irresponsible drivers. I don't think it makes much difference, maybe a few dollars over six months.
  19. Pizzaman

    Pizzaman Active Member

    RE: Let me try again.

    What do you consider a 'few' dollars? I recently got quotes for car ins. from my agent. When he ran the quote through their search softwre (which does not factor in credit reports) Progressive was the cheapest. When the agent went to their quote site, the quote that came back (w/CR figured in) was over $50 higher for a 6/mo policy!
  20. kim

    kim Well-Known Member

    RE: - Auto Insurance -FYI

    State Farm.

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