Be VERY Aware of Lexis Nexis Insurance Scoring

[Household61974]

Are we talking pre-world wide web? 

How did EQ obtain this info? 
Better yet, how did you find out about it? 

[Household61974]

Insurers never NEED to? Or they are not ALLOWED to? 
I'd be so green when I realized that number! 

I'm SO GLAD I see your reply saying to get a re-write based on CBIS. Our scores have been in the high 600's for years (10+) (primarily due to high credit utilization). Just in the last 30 days have we gone from low 700's to 850 (TU) and 825's (EQ & EX). Will def be requesting a form from insurer!  

My mind is blown! How did I never know of this?

[Gonzozap]

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@Household61974 wrote:

I realize there's some age on this post, but I got wind of LexisNexis last year and pulled it. 

Was surprised to see my driving history in the way of quick braking and quick acceleration on it. Made me look like a bad driver (though in my 50 years I've never had a ticket and had precisely one at-fault accident - I backed into a cement pillar.) 

Where did that info come from? Bought a new 2022 GM vehicle two years ago. Came with a free one year subscriptions to Onstar, Sirius and wifi on it along with an app that I can start the vehicle with from anywhere. 

I suspect one of those "features" is the culprit LN pulls from. 

Right after that, our premiums DOUBLED (no exaggeration).

To add some fury, our 17 yo son got his drivers license last year. We expected the premium jump, but not doubled AGAIN! 

$250 to $500 to $1000 per MONTH over about 18 months. 

I did a wee bit of looking into at that time. Can't recall the specifics, but found something stating that once you purchase a car and allow those free services they forever track you, even if you don't subscribe to the service. 

The super sleezy thing about it is that we PURPOSEFULLY do/will not allow our ins providers to install the "how you drive" tracking devices in our vehicles, no matter the discount offered. Yet, they're still accomplishing this. 

Thanks for the reminder I need to look into this and find out who and how to stop it.

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Wow. That's pretty darn awful.  Home and auto insurance are just the latest in ways big business has found to fleece America consumers.  A LexisNexis report ignores credit scores which for umpteen years has been the way businesses would decide if the customer was a good or bad risk.  Now, actuaries are on the scene and have found this NEW way to take advantage.

About your automobile, I read somewhere that sometime real soon, ALL new cars will have this technology and our insurance will rate us based on HOW, where, how long, etc. we drive our cars.

Good luck with everything.

[Gonzozap]

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@Zoostation1 wrote:

CBIS models punish you for too many cards, low average CL, any store cards at all, and more IIRC.

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Also too many inquiries, too many recently opened accounts, not enough credit history.  So to the many people in this community who nonchalantly just apply for one credit card after the other, it might come to bite you in the butt on insurance premums.

[TrapLine]

Thomas_Thumb

Good information! A reality check for sure.

Did not know and being overcharged certainly does not make my day!

[Zoostation1]

I've been with State Farm since 2005, and I don't know when they last pulled mine, but if it was 2005 I at least had a clean profile back then.  Not knowing when they last pulled makes me a bit leery of poking the bear on that one.

[Thomas_Thumb]

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@Household61974 wrote:

Insurers never NEED to? Or they are not ALLOWED to? 
I'd be so green when I realized that number! 

I'm SO GLAD I see your reply saying to get a re-write based on CBIS. Our scores have been in the high 600's for years (10+) (primarily due to high credit utilization). Just in the last 30 days have we gone from low 700's to 850 (TU) and 825's (EQ & EX). Will def be requesting a form from insurer!  

My mind is blown! How did I never know of this?

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Do a search of CBIS on this forum and you will see multiple threads relating to CBIS. LexisNexis is the primary CBIS and State Farm uses them. Between 2015-2018 consumers were able to purchase LN CBIS scores for $12.95 a pop. Sometime in 2018 they shutdown consumer access. You can still see their reason codes list for scoring. Anyway, that's how I know/knew my scores - different scoring metrics and different score range than Fico. A screen shot from my 2017 report is pasted below.

Note: Not all insurance companies use CBIS. Of those that do, not all use LN scores.

Here is a breakdown of scores from one insurer who sets top tier at 829-997 and some data on how score can affect rate:

[Zoostation1]

Everytime I see/hear about shutting down consumer access my blood boils.  I'm a firm believer that it should be a mandatory requirement that any non-internal credit based score used (regardless of whether used in a credit decision or rate setting) be available to the consumer.

[Thomas_Thumb]

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@Household61974 wrote:

Are we talking pre-world wide web? 

How did EQ obtain this info? 
Better yet, how did you find out about it? 

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I know an old company called (Amoco) had locations around North America that were connected by PROFS  back in 1988. I recall windows 3.1, floppy discs and crude messaging.  These were proprietary networks, not the worldwide web as we now know it. Nonetheless databases and corporate sharing of information electronically was possible back then. Scoring of consumers really started taking off in the late 1990s.

LN does use information from EQ credit reports but also much data from other sources.

[Household61974]

Here's one for you . . . Eastern Airlines. 

I learned to type in HS on an IBM Sentric. Used DOS at my first "adult" job. I can still hear the battle cry of the dot matrix printer getting jammed up with the green and white striped paper.