Posted On: November 8, 2006, 5:15 pm CST

Posted By: EB

KLS your starting to catch on. People with poor or adverse credit scores (not credit reports) tend to have more claims as a whole. Not all people in a certain group have the same habits of that group but this is still "the group".

People with good or better credit scores tend to make premium payments on time, have less tendency to file claims, and tend to stay with the same insurer longer thus reducing overall expenses to the carriers.

The industry has done many studies on this issue therefore the actuarials tend to favor the better credit scoring individuals.

I'm all for it. You can give me 5 good credit scoring clients and you can have the 10 others.