Posted On: May 29, 2008, 10:25 am CDT

Posted By: Joe B

While most of us will agree that credit does indicate degree of risk, you have to also wonder if it might be used to jack up premiums if no other factors will do so.

I recently went to quote my own policy and was astounded at where I was tiered. I sent for the reports, thinking possibly something was wrong.

Turns out that my credit is great, claim history, none (insurance agents usually don't make claims), driving record clean, vehicle usage normal, no young drivers in the household, three cars, two drivers, everything you would think desireable in a risk.

What caused my rates to increase? Because one of my cars, a 1989 Honda Civic, without comp & collision was deemed "to old". For this car, my premium rate was 20% higher for the entire policy. No consideration taken for the condition of the vehicle. Another excuse for a higher rate.

You do have to question if scoring is also being used to inflate the premiums.

Of course knowing how the system works, I wrote the policy without the older car, got my preferred tier, than added the Honda after policy was issued.