Auto Insurance Credit Pull

[Anonymous]

Thought this might be interesting for the credit addicts out there. I just applied for a new insurance policy with Progressive and after purchasing the insurance one of the documents I received showed this break down of how my credit report affected the insurance:

Experience You Have With Managing Credit

Months since your earliest reported loan  or revolving account opened - Average 126

Your age when your earliest reported loan or revolving account opened - Average 26

Use of Available Credit

Percent of available credit used on revolving accounts - Average 37

Current Payment Status of Installment Loans and Revolving Accounts

Number of loans and accounts with a satisfactory current payment status - Average 5

Number of installment loans in collection, default, reposession, foreclosure or charge-off - Average 2

History of Late Payments

Months since your most recent collection - Average 6

Months since your most recent revolving account 30 days past due - Average 70

Credit Seeking Behavior

Number of accounts or loans opened in the last 12 months - Average 2

Months since your most recent bank revolving account opened - Average 25

They then worked out my insurance score by starting with 100 and subtracting points for the positive factors below the average, and adding points for the negative factors below the average. My score ended up being 88, which they stated was better than the average range of scores for consumers who recently recieved a quote. They didn't say what that average was, but it was cool to see all the other averages.

Also worth noting is that I was insuring the two members of my household on our two cars, and because I put my name in first they only asked for my social security number and ran only my credit. If my partner's considerably lower score had been used our rates would have certainly been higher. I have no idea if all the insurance companies do this or just Progressive, but I am very happy with the savings we got there!

[joeh05]

I am an insuance agent for Allstate and yes most companies do some sort of credit rating. I know State Farm and some others do so.........

[Guardian]

They all do some for or another but keep in mind most of them use the useless services of ChoicePoint and its all interpretative and not always correct. In fact when I got my insurance, I contacted them and disputed a few items with them and ChoicePoint was supposed to provide the report used, they didn't even have a record. It was asinine and ultimately I had to prove them wrong myself and it was adjusted. So if they are going to use it to grade you, they MUST provide you a copy of how and what they used so you can dispute any inaccuracies or at least KNOW what was used against you. They meddle in an area where even the CRAs cannot get right.

[2wheel]

I woulda told them I am not trying to buy a car.... I am trying to insure one

[Anonymous]

Congress or the states need to put a stop to this practice of using credit scores to determine

part of your insurance rate. Especially in these times, with so many people losing their jobs and their credit

scores getting trashed.

You know them dam crooks at the insurance companies are running new reports all the time, looking to jack someone's rates up.

Yes, I hate the dam insurance company's. 

[Anonymous]

Wow, lots of insurance company angst! Believe me, insurance is one of those bills I hate paying most each month. But, between the two policies we've now combined into one we are saving over $200 each month, so now I'm just kicking myself for not shopping around sooner. I was with an actual Farmer's agent before (as opposed to buying insurance online), the same guy I'd been with since I turned 16 and got a license, the same guy my parent's cars, house and boat had been insured with for even longer, and the same guy who insures my home, and I don't feel like my best interests were ever taken into consideration. I'm trying to talk my dad into shopping around for better rates now.

Anyway, regardless of how badly insurace does or does not suck, I just thought it was interesting to see the averages, where I fell, and what they took into consideration. BTW, I think I forgot to mention that the credit pull was soft.

[Guardian]

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@Anonymous wrote:

Congress or the states need to put a stop to this practice of using credit scores to determine

part of your insurance rate. Especially in these times, with so many people losing their jobs and their credit

scores getting trashed.

You know them dam crooks at the insurance companies are running new reports all the time, looking to jack someone's rates up.

Yes, I hate the dam insurance company's. 

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I think they should stop it simply becaue the inaccuracies and prevalence of errors is unfair to the consumer and the law is founded on the basis of "good faith" and "equitable resolve" and therefore would serve the primary foundation of its purpose.

[Anonymous]

Is it a soft pull or a hard pull?

[Guardian]

It shows up as hard generally.

[MattH]

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@Anonymous wrote:
...

Your age when your earliest reported loan or revolving account opened - Average 26

...

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Hmm, there is a metric that I have never seen before, and one where I would look good because I got my oldest active account before I was 22.  But wouldn't that severely penalize immigrants or older people who had major troubles when young before learning to fly right?