Posted On: August 26, 2008, 10:01 am CDT

Posted By: B

I don't live in Michigan but I still don't see how credit scoring should have an impact on deciding two things, 1) whether or not to write the risk and 2) at what price. Is a credit score really that good of an indicator of who is a bad risk vs. a good one. I am a driver with a very clean record but because of my divorce and the amount of debt I have, my credit score is not good at all. Does this mean that I should have to pay higher premiums? Does this mean that I'm a bad risk? I don't think so, again I may be biased on myself, but seriously how fair is that? And yes, I understand that someone with my record and good credit would be more attractive that just makes too much sense so it is a lude point, but in all honesty what really is the difference between us. Nothing, except maybe unfortunate circumstance. I'm not applying for a loan or a mortgage, I understand that my interest rate is directly affected by that so why should my auto policy be the same. Am I borrowing money from the insurance carrier? Also, if I don't make a payment on my auto policy, they are going to cancel it which will show a lapse in my coverage. I'm in the WC industry and do not know how auto policies are underwritten. With that being said, do the insurance companies not look at past coverage history to see if a trend of lapses is present? That to me would be a better indicator of how likely the insured is going to pay their premium. Not to mention, if I don't pay my auto policy it doesn't affect my credit score. So seriously, how good of an indicator is it....really?