Insurance and Credit

[Anonymous]

Well, the insurance and credit issue smacked me today. Got my homeowners info in the mail.

Your premium was influenced by information from consumer reports:

• Number of accounts opened in the last 12 months
• Number of accounts ever 30 days late
• Account with current delinquency reported
• Average number of months open for all accounts
• Please refer to the enclosed insert for additional details.

They pulled from ChoicePoint, one of Satan's little minions.

In the enclosed notice, ChoicePoint has a website so you can request the report online with ease. I've submitted those requests. Will take a look when I get 'em in the mail.

Also included the insurance company's "clear language".

Based upon information in your consumer reports, the amount you pay for homeowners insurance in State Farm Fire and Casualty Company is more than the lowest available rate.

Translation: We're taking more money from you for absolutely no reason, simply because we're allowed to under law.

Washington apparently has some added state law protections which may or may not be better than other states. As luck would have it, the Washington State Insurance Commissioner's December Consumer Tip is on credit scoring. It has a link to commonly asked questions and a fact sheet that lists what an insurance company may or may not do regarding credit and insurance.

In a nutshell, absence of credit history, number of inquiries, medical collections, new car or home loans, "use of a particular type" of card (gonna have to research that vagueness some more), or total available credit cannot be used to deny, cancel or ratejack you.

Looks like, at least in my case, State Farm is in the clear and didn't violate the law. Would seem pretty dumb for them to do it so flagrantly, but ya never know. Always a good idea to follow up and check.

I did find one additional angle of attack I'm going to pursue. The enclosed insert also stated:

If your credit history was adversely influenced by certain life events such as catastrophic illness or injury, death of an immediate family member, temporary loss of employment, divorce, or identity theft, please talk to your agent about request an additional review of your information.

They encourage you to GW them. I most certainly will be in touch.

[Dawn]

You have my greatest sympathies.  Our auto insurance is approaching renewal time, and I know that they review our records prior to renewal, as well as each time we have added a new vehicle to our policy.  I live in fear that our report will change significantly for some silly reason and we will be hit with higher insurance rates.

Now .. if I could just get my kids and their friends to comprehend that this can and does happen if their credit report is not viewed positively by their auto insurance provider.   They have a hard enough time affording and justifying paying those pesky auto insurance premiums, but don't have a clue how much of an impact on their rates that their credit report has.  Sure wish we lived in a state where this was not permitted ... but we don't. 

[Anonymous]

I'm waiting on my ChoicePoint - but if it's as inaccurate as Innovis we know what I will be doing for months on end.

[Anonymous]

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Lady_Scarlet wrote:

I'm waiting on my ChoicePoint - but if it's as inaccurate as Innovis we know what I will be doing for months on end.

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I'm banking on ChoicePoint inaccuracies. From reviewing the Q&A and fact sheet, at least here in Washington, if there are inaccuracies then the insurance company has to rescore and give me a refund if I score higher because of the inaccuracies.

[Anonymous]

called a company that goes thru Nationwide... ( I wonder if they are on my side )  They are going to quote me on mobile home insurance , auto insurance and business insurance (lie-a bill -ity) .. any way everything looks good .. now the biggy the mobile home is in my name but they wanted my wifes ssn also ...  She was in the hospitol for 6 months about 1 year ago and she is now disabled .. Her bills got all screwed up and I couldn't take on hers and mine at the same time ... Her score is like 450 or something.. So here comes the largest insurance quote of my life .. Insurance will likely be twice what the mobile home is worth . after paying for a few years..LOL

What else..

$1 regestration fee to county --- so I can pay taxes on the mobile home

$1 regestration fee Land filing --- so I can pay taxes on the land the mobile home sits on

$225.00 regestration fee for electrcity thru a independent power assoc.

Then

insurance on the mobile home

setting and lease of propane tank (out in the country) 200.00

filling 100 gallon tank .. used just for heat (379.00)

Water assoc fee 45.00 the first projected months payment of 35.00

We still have to clean up our land and get it ready .. also we have to fix the driveway (asphalt)

We are almost there within another month if someone doesnt find another way to scr** us..

[Anonymous]

I recently renewed my insurance on auto & home. I don't have both policies combined to get the auto/home discount because it was less expensive to keep them separate. My auto insurance company gave me the discount anyhow because I'm a home owner. I have 2 auto policies, one for my vehicle's and one for my 17yr son's vehicle. Teen insurance is highway robbery in my opinion but anyhow to keep his rates low I have myself as the primary since my son don't have a credit score at all yet ( were working on that now ). I asked my agent how credit scores were used it rating insurance rates and he stated that the inquiry /rate the insurance company is based on what your score was at the time of your last  "hard inquiry". Therefore if your score has come up since the inquiry they get from your last hard inquiry then your rate my not reflect your actual score at the time of your policy renewal.

[Anonymous]

i have car insurance which went up this year insteadof down.  Reason: age.  The insurance companies ARE allowed to discriminate because of age.  Our legislators at work

Message Edited by casinoannie97 on 04-17-2008 08:43 AM

[Anonymous]

My insurance through progressive is 158.00 per month  on a 2003 F-150 fx4 truck..Crew Cab..

They said my insurance lapsed about 5 months ago..

I am going to cancel and pay the pro rated amount for the 3 weeks I have been with these idiots, I believe they are so high because I am paying for those dumb commercials... Anyhow I found insurace cheaper at State Farm For 115.00 per month and it will go down after 6 months.. If I cancel with Progressive and dont pay the full 6 months will they report this to the credit bureu or will just paying what they ask for pro rated be suffeciant.. Also Never, NEVER NEVER believe what you hear or read about insurance companies ... I think they are all a bunch of theives out to get your money... and now the government is involved.... Also Never Never Never use Geico  they are high as heck too..

[Anonymous]

I have to say, we've been lucky as all get-out. We have USAA and they've never seemed to base their rates on our credit (again, I say lucky, 'cause our credit STINKS!).

We once looked at other insurance companies (for a giggle, 'cause I know that no one will EVER treat us better than USAA), and other companies were going to charge us $600 (lowest quote) for 6 months versus USAA's $400 per 6 months. Progressive (IIRC) was going to charge us $800!!

We pay roughly $98 month for auto ($150 deductible), renter's and hurricane/flooding (at least $150K coverage) insurance. And every hike we've had has been due to the disaster the insurance companies suffered here in FL with the last wave of hurricanes/tornadoes.

Goes to show you: Your credit standing affects more than just your interest rates on loans!! I never would have thought of that prior to coming in here.