At least North Dakota has a legislature that manages to listen to the arguments and make a reasoned decision – not one based on hysteria and fear-mongering from opponents of credit scoring, a proven method of equitably adjusting insurance rates.
As a owner auto insurance offices in 3 west coast states, credit only benefits the ins. carriers. specializing in this business for the last 25 years, this allows the companies to collect more premium from the people who could afford it less. The insurance lobbies got to the legislatures, to bad for the little guy.
When it comes to the use of credit scoring with auto insurance, I have never seen someone’s policy premium INCREASE.
From my observations the companies first quote the policy based on underwriting factors such as where the insured lives, the driving history of the insured, and what vehicle is being insured, as well as some other modifiers such as prior insurance etc. With that information the company provides us with a base rate, and then the discounts that are generated from credit scoring will be used to decrease the premium.
This is what I have seen also – the bleeding hearts don’t go for facts, just assumptions. You don’t have to be rich to have a good credit score, just responsible. Twenty years ago when I started working for an insurance agency, I was told that the folks on the West side (rich part of town) take a lot more hand holding when it came to paying their bills while the folks from the East side (not affluent) were much better in paying their bills.
So spare me you comments about those not affording it having to pay more, it all comes down to responsible actions on the part of people.
Politicians who get it!! Amazing!
At least North Dakota has a legislature that manages to listen to the arguments and make a reasoned decision – not one based on hysteria and fear-mongering from opponents of credit scoring, a proven method of equitably adjusting insurance rates.
As a owner auto insurance offices in 3 west coast states, credit only benefits the ins. carriers. specializing in this business for the last 25 years, this allows the companies to collect more premium from the people who could afford it less. The insurance lobbies got to the legislatures, to bad for the little guy.
When it comes to the use of credit scoring with auto insurance, I have never seen someone’s policy premium INCREASE.
From my observations the companies first quote the policy based on underwriting factors such as where the insured lives, the driving history of the insured, and what vehicle is being insured, as well as some other modifiers such as prior insurance etc. With that information the company provides us with a base rate, and then the discounts that are generated from credit scoring will be used to decrease the premium.
This is what I have seen also – the bleeding hearts don’t go for facts, just assumptions. You don’t have to be rich to have a good credit score, just responsible. Twenty years ago when I started working for an insurance agency, I was told that the folks on the West side (rich part of town) take a lot more hand holding when it came to paying their bills while the folks from the East side (not affluent) were much better in paying their bills.
So spare me you comments about those not affording it having to pay more, it all comes down to responsible actions on the part of people.