I had an account with Progressive Insurance. I discontinued my policy with them in Feb. 16, 2003. I found out that they did a hard pull on my credit report in January 5, 2003. I talked to a customer rep. and she said that by signing with them I gave them permission to pull my CR anytime. I said "with that reasoning, does that mean you can pull my credit report everyday, weekly, monthly? that does not seem fair. I understand that you should pull when I sign up, but not after 2 years of being with you guys." Then, she said "We had to pull your CR to determine if we can lower your rates or not. It is one of the factors we use" What do you think?
It sounds like they coded it wrong. I believe that several months ago there was a thread about a similar problem. Checking to see if they want to lower your rates should have been an account review.
The Oklahoma Legislature currently has a bill which would forbid insurance companies from using any credit score to adversely affect the rates paid for automobile insurance. The crux of the argument before the legislatures is that this is nothing more than price gouging and cannot be permitted in Oklahoma. They finally got something right. (Maybe) There is also a bill before the legislatures to change Oklahoma to a no fault state for auto insurance.
DISPUTE IT!!! THEY CAN NOT "SEE" HOW YOU DRIVE BY YOUR CREDIT REPORT!!! My brother has ROTTEN credit (EX-WIFE MESSED IT UP, REALLY BAD)...so he OVER-PAYS for insurance!!! BUT HE ONLY HAD ONE ACCIDENT (UN-AVOIDABLE POLICE CHASE~~THE BAD GUY "TOOK OUT HIS TRUCK"...HE WAS NOT HURT...BUT THE TRUCK WAS TOTALLED)...NO TICKETS...ONLY THE ONE CLAIM!!! "I HAVE NO CREDIT CARD OR LOAN WITH PROGRESSIVE INSURANCE, NOR DID I EVER APPLY FOR ANY CREDIT CARD OR LOAN WITH PROGRESSIVE~~PLEASE REMOVE THE INQUIRY"
Here is more information on this topic: http://www.geocities.com/insurance_credit_scoring/index.htm http://www.geocities.com/insurance_credit_scoring/industryvsconsumer.htm http://www.geocities.com/insurance_credit_scoring/IvsCII.htm http://www.casact.org/coneduc/spring/2002/handouts/birnbaum1.pdf
