Credit and Auto Insurance*Baloney

They claim the data is proprietary, so they can't give it out. The Fair Isaac rep at the Georgia dept of insurance hearings on the matter, admitted that they cannot show a "cause and effect" only a "statistical correlation."

That little transcript has some good stuff in it. Kudos to Georgia. The Fair Isaac rep said that they went back into their archived credit reports, and the insurance companies who participated, went back into the claims archives, and they got the statistics from that data.

Virginia was one of the first to allow credit in insurance underwriting. Boo Virginia

Your state's insurance department is the place to voice your feelings. They have a website.

 

Call them and tell them you plan to switch to a company that does *not* use credit information in their underwriting. If you never gave permission for them to pull credit in the first place, you should complain about that, too.

You shouldn't have too much of a "new policy" penalty at a new insurance company, as long as you've been continuously insured for a long time.

I use GEICO. I've been satisfied and my rates have been reasonable. They're also good about billing and cancellation policies/warnings. They don't check credit.

-ingenue

 

the best thing to do is quit buying car insurance.

 

I use nationwide, which has never asked or obtained a copy of my credit report. I pay 43$/month for full coverage, so i'm pretty satisfied.

 

If I recall, lb, you are in a state which requires insurance to get/maintain a drivers license. That would be a big sacrifice, no?

I suppose a really militant individual could completely give up their driving priviledges, LOL. Go ahead and try it, and tell us how it works out.

 

Since I live in the country this would a big inconvenience...we do not have a train or bus system in effect. Besides riding my horse to work we have no other choice. And paying the uninsured motorists fee everytime I need to renew my car tags at the VA Dept of Vehicles is not my idea of fun (or saving money).

 

Most states Have mandatory insurance laws do they not.?Also how it is enforced varies by state correct?
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1*I just renewed my drivers license last year and my license plates this month and did not have to offer proof of insurance for either.In my state you do not have to prove you have insurance to title a car you just purchased either.The only requirement is you had better not be caught driving without insurance or your A** is up the famous S creek.

2**No people don't give up driving;they just do what they did before mandatory insurance became law-drive without insurance.

 

I understand : Some states such as yours have this flaw in enforcing mandantory insurance. This needs corrected.

 

It is not a flaw, I believe that mandatory insurance is good, and I would never, ever, in your wildest dreams, drive without insurance.

NC requires auto insurance to get and maintain a driver's license. No one can be declined for insurance in NC. If they do not own a car, they must get a non-owner's liability policy.

 

What are you smoking today, lb????

 

1*I told Dani the method of enforcement was flawed not the mandatory insurance itself.
2*It wasn't when i got hit by an uninsured driver.
3*Neither would I but I don't need the state to force it down my throat!
4*Ohio can not take away a drivers license or license plates simply because you don't have insurance which is as it should be.
5*At a very high price no doubt.
6*Here the requirement to buy a policy is not based on wither or not you have a drivers license or a car.Again this is only proper.

 

I might ask what you're drinking that caused you to read the wrong thing into my reply to Dani;but i won't!

 

Then it's not really auto insurance, per se, it's driver insurance.

Sounds like a sucky requirement, to me.

And how do the underwriters apply vehicle-based statistics (station wagon=low isurance, 2-door sports coupe=high insurance) to a non-owner?

-ingenue

 

1*Drivers cause accidents not cars.
2*It is.

 

While the idea behind it may be good mandatory insurance has many flaws.

 

LOL, you should address that question to the NC Commissioner of Insurance, ingenue.

I don't know how they rate it, not my job, LOL. I just sell it. They have to have it.

 

They do check, at least they did mine. Trans Union

 

The basic idea behind ANY kind of insurance is to assess risk (underwriting) Those companies that include credit reports, and sometimes investigative reports (with required permission) figure that a person who is having credit problems may be more likely, statistically to have more accidents,drive more carelessly,not maintain his/her vehicle properly etc. etc.On homeowner's insurance the underwriters corrollate poor credit with possible foreclosure "lightning".If they didn't underwrite properly,they would go out of business.

 

LOL. WHY CHAT, you sound like you work in the insurance industry. Fair Isaac stated there was no "cause and effect" implied, but they found a statistical correlation. You could probably find a statistical correlation between people who eat ice cream and people who file insurance claims if you tried.

As far as credit problems causing claims, I personally know very well-off people (most likely they have good credit also) who consider it fine to wait to replace a roof, hoping that a hurricane will come through and tear it up for them, so the insurance company will pay for it, instead of them. Joe Shmoe who works on the assembly line at the Ford Plant, and probably has a medical collection or two on his report, and doesn't believe in credit cards, climbs up there with his neighbors and fixes it himself.