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How to improve Auto/Home Insurance scores?

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DaveInAZ
Senior Contributor

How to improve Auto/Home Insurance scores?

Every annual renewal for my Home & Auto insurance my insurance co. sends me a notice that my premium "would have been lower except for information in [my] consumer report", meaning my CR, they soft pulled TU. On Credit Karama my TU & EQ Fako scores are 740, from a car loan finalized last week my EX score is 700. But on CK my auto insurance score is 831 which it rates only as "fair", on a scale of 150-950, and my home insurance score is 829, which is "fair" on the same scale. 

 

If my credit score is rated "Good" why would my insurance score only be "fair"? I haven't had a moving violation ("ticket") since the mid 80s. I haven't made a claim on my car insurance since the mid 90s (no tickets to either party, damage on private property), and haven't made a claim on my home insurance since early 2000s, only a couple thousand from a break-in, and that was a house in Vegas that I sold in 2005. I don't see what I can do to improve my insurance score except to continue to increase my credit score.I've been with the same insurance co., American Family, for over 10 years with never a cent in claims and a perfect driving record.

 

They say "the credit factors that most influenced your insurance score were unfavorable number of adverse public records, deliquency, recent deliquency, and insufficient length of credit history. I get that "deliquency" nonsense when I get my Fico score from Walmart store card. I pulled my free annual CR last Oct. from all 3 CRAs, and monitor TU & EQ at CK and EX at Credit Sesame. There is only 1 derogatory/public record, my BK7 discharged 1/2011. There are no deliquencies, all the accounts included in my BK report $0 bal, IIB, paid satisfactory, and there sure as heck arent' any "recent" deliquencies, perfect payment history since discharge, even on my mortgage that wasn't reaffirmed & doesn't report. TU did recently change my age of credit history from 3+ years to only 1 year 11 months, while EQ shows it as 8 yrs 0 months. For some reason TU recently did a name change on me, changing my name from full middle name to just the initial, and I think that changed the age of credit history, altho I did check my oldest CC accounts and they use just the middle initial. 

 

 Anhy suggestion appreciated. For starters, can I dispute that change in age of credit history with TU? Just checked their report from last Oct. They list credit accounts I closed prior to BK opened as far back as 2006, and my oldest open CC is listed as opened 10/2011, so if age of credit history is based on open accounts the previous 3+ years was correct, but EQ seems to be going by those closed prior to BK, paid satisfactory accounts.

 

Message 1 of 4
3 REPLIES 3
gdale6
Moderator Emeritus

Re: How to improve Auto/Home Insurance scores?

Disregard those scores in CK, they are Fakos as well. There is a fico insurance score model and that is what they most likely ran and it is based on your credit history. I dont agree with it, its crooked IMO and they justify it and say "those who have credit problems are more likely to file a claim", this is crap I have had sever BKs and multi credit probs over my lifetime and I never once had thought of insurance fraud. Its just a legal way for them to rip us off. Disregard CKs AAoA as well they only use open accounts and Fico uses both closed & open OC accounts to calc AAoA.

Message 2 of 4
ezdriver
Senior Contributor

Re: How to improve Auto/Home Insurance scores?


@gdale6 wrote:

Disregard those scores in CK, they are Fakos as well. There is a fico insurance score model and that is what they most likely ran and it is based on your credit history. I dont agree with it, its crooked IMO and they justify it and say "those who have credit problems are more likely to file a claim", this is crap I have had sever BKs and multi credit probs over my lifetime and I never once had thought of insurance fraud. Its just a legal way for them to rip us off. Disregard CKs AAoA as well they only use open accounts and Fico uses both closed & open OC accounts to calc AAoA.


Well said and I agree completely. Nothing but an opportunity for insurance companies to rip off consumers.

 

 

Message 3 of 4
Anonymous
Not applicable

Re: How to improve Auto/Home Insurance scores?

The insurance companies are making a straw dog argument. Thing is that they don't really NEED to do so. They can LEGITIMATELY argue that consumers with credit issues are more likely stop paying on an account, thus leaving them with an unpaid balance. Of course that doesnt sound nearly as financially damaging (to them) as "claims".

Message 4 of 4
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