Just a rant about credit based insurance scoring.

[Anonymous]

I’ve been a member of USAA now for almost 3 years. I previously had renters insurance with them for $15 a month. I canceled the policy because we weren't going to need it for a certain period of time.

Now that my fico scores are much lower, they want $40 a month for the same policy I had! I re-quote every 3 months over the past year with no difference.

I guess I’ll just stay with my $15 a month Travelers policy for now, they don't seem to care.

Message Edited by addicted2fico on 05-26-2009 01:32 AM

[FretlessMayhem]

Is it possible that the rates went up and it isn't a credit based decision? Did you have a big score drop between now and then?

[Anonymous]

Personally, I don’t think the rates could have more than doubled. At the time I was in the low 700's. Since then I have 2 judgments and 2-4 items in collections depending on which report you’re looking at.

I just received a letter today from USAA about my most recent quote (5-12-09).

The following information was considered as part of your credit history:

Number of Derogatory Public Items

Number of Collection Agency Filings

Ratio of Total Amount of Past Due Balances to Total Balances on Accounts.

Number of Accounts Always Paid as Agreed

Also, they have only used my EX report; which of course is my worst.

Message Edited by addicted2fico on 05-26-2009 01:32 AM

[Anonymous]

It is a hardening Insurance market........If you look at AIG (the number 1 surplus market) and now Hartford........The industry is shrinking........

It is 1/2 market and 1/2 insurance score ( similar to FICO, but the alogrithum is designed to assess insurance risk).

There are actual studies that show that those with lower Insurance Scores have a higher risk for accidents........however it doesn't address whether the lower score or circumstance causes such a higher risk.

I am sorry that you are seeing such a large increase!!!!!!!!!!!

You need to look at what they are really offering you.  I only carried renters for 1 of 7 years renting........It is fairly cheap, but when you look at what they actually pay out you need to consider if your things are worth it...

...and this being said by an Insurance Agent. 

Good Luck! 

[flintlockjo]

I was just getting ins. quotes for a new house, and because of my not so great credit, I was quoted double the amount of most everyone I know. the one agent even told me it was because of my credit. What they dont tell you is they dont even look at your report, so things that may have happened yrs ago and are falling off soon don't get seen. I did finally get a good quote thru AAA.