Progressive Pulls from the website and it's a HARD Inquiry. Sam I'm in GA and they did me just like you said... quoted me something and said PAY IN FULL. GEICO has a company now that takes just anyone. They are not cheap thought as they advertised. I have State Farm. GREAT rates and no Credit Check!
It seems so unfair for insurance companies to be able to pull credit reports on their customers. Insurance premiums are paid ahead of time to begin with. So no payment, no insurance. Why should they have information about my personal credit file? Hubby has State Farm and I have Erie Insurance, fortunately for us, neither pull our credit reports. But we have been with both companies for several years, so maybe this is a new policy sweeping the industry. Dani
It started about 5 years ago, and gradually more and more companies started doing it. Now there are only a few who don't. It has nothing to do with whether or not you're going to pay your premiums, IMHO. If you purchase a policy and pay it in full up front, there is no payment question involved. If you purchase a policy and make payments by some other mode (i.e. monthly) you still have to make a big initial payment in most cases, and premiums are accelerated if you cancel early or make no futher payments. A company may say that they lose money on the underwriting and then the cancellation procedure. I don't think so. They got your money and do not have to deal with the risk any longer. The underwriting and cancellation procedures take a few minutes of computer time. The other reason they give is that you will be a bad risk, because people who owe money are more likely to commit insurance fraud. I don't know of any statistical study that shows that this is the case. Many people with plenty of money do things like file exaggerated or phony insurance claims for small amounts that will never be checked out by a claims adjuster. And they can check your claims history (and premium-paying history also) by other means. It is just another reason to raise your rates. If you are a good insurance risk, but still have to pay high premiums, they make more money. If they make more money, they pay their stockholders more in dividends, the price of their stock goes up, and they are richer. If you check out the companies that do not check credit history, they are all mutual companies, meaning they are not publicly traded companies. IMHO, rating insurance premiums based on credit history is just another fleecing of the American consumer. breeze
JUST MY OPINION...credit history should have NO barring on how you drive or take care of your house!!!! ALSO MY INSURANCE COMPANY IS NOT A CREDITOR, BECAUSE I PAY IN FULL BEFORE COVERAGE STARTS!!!!!
People in financial trouble have been known to burn their own house or business property for financial gain. Therefore proprty insurers have a legitimate reason for running a credit check as financial condition is directly related to risk in insuring real property.
TO MAKE THINGS WORSE...YESTERDAY, I GOT IN THE MAIL...MY INSURANCE COMPANY WANTS TO SHARE THE UN-NECESSARY CREDIT INFORMATION WITH "THIRD-PARTIES"... I DON'T THINK SO...IT'S BAD ENOUGH CREDIT CARD COMPANIES WANT TO DO THAT... AT LEAST THEY ARE A CREDITOR...
Breeze - nope, the closest thing I have to being "in the biz" was a stint in new accounts and later collections for a dept. store while I was in college. I'm in high tech (marketing) now. -- Those of you who don't see your insurance company as a creditor -- do you make a lump-sum payment once a year or do you make monthly payments? Insurance premiums are due in full prior to coverage starting, unless the insurance company grants you credit and lets you pay over time? They have every right to see your credit history for that fact alone. And, while the civil libertarian in me hates to admit it (it's a big brother kind of issue) ... it makes perfect sense that they be able to factor in how you handle your money. Statistically, FICO scoring models have been proven to be a reliable & accurate predictor of how much in claims they can reasonably expect to pay-out. In "the old days" you granted them the right to do an investigative consumer report (when they would interview your neighbors, boss, family, etc. ... to determine your "character.") Now - thank god- they use FICO scores. Unless you're going in for a couple million in life insurance ... then they do the investigation thing. -mj
--------------------------------------------------------------------------- Those of you who don't see your insurance company as a creditor -- do you make a lump-sum payment once a year or do you make monthly payments? Insurance premiums are due in full prior to coverage starting, unless the insurance company grants you credit and lets you pay over time? ---------------------------------------------------------------------------------- I PAY IN FULL BEFORE COVERAGE STARTS...
Mother2 -- Think link should help you in evaluating GA insurane companies. http://www.inscomm.state.ga.us/ Also, the insurance company you select only really matters when you need to file a claim. But when buying, if you want full coverage, make sure they tell you exactly what that includes. In CA, 'full coverage' varies wildly.
