She was elected by the Detroit area where the auto rates are highest. Don’t expect any intelligence to be flowing from that city. The outstate area has little to say on election day at this point. We have had some interestion governors, but this may well be the least competent one in our history.
With all the layoffs, reduced work weeks, and financial turmoil in peoples lives this is a great way for companies to increase premiums as the population struggles with family budgets.
Yes, every company in every industry that uses credit of any kind is looking to shaft the little guy. I’m so tired of that lame arguement. Insurance scores are an indicator that an insured is more or less likely to file a claim. This isn’t a feeling, it’s a statistical fact. Why does that fact become less valid when times are hard? When the cost of a product increases to us, it has to increase from us. That’ just logical, except in Florida and Michigan.
If the reason for disallowing the use of credit-based insurance scores is the inaccuracy of the underlying credit reports, shouldn’t the use of credit be banned for everything including loans, credit cards, etc?
If a credit report is rife with errors, it’s unfair to use it to judge someone’s credit worthiness too.
Aside from not fully understanding the justification and use of INSURANCE credit scores, the Michigan DOI fails to realize that insurance companies will lower their base rates upon review and it is justified. If INSURANCE credit scores go down for people in Michigan, most of the companies would indirectly have had a rate increase. If the claim frequency and severity to not change to the worse, then the companies would realize that their base rates are too high. Until Granholm came into office, Michigan was a competitive state. If she stops interfering, it is likely the companies would file rate reductions to remain competitive.
First, not all insurance companies have been successful over the past few years by offering better rates to people with better credit scores. The failing economy has had a lot to do with that. The companies that HAVE been successful with credit scoring…I can tell you one company has had their AM Best rating go up. The argument is watching performance
and the results are still coming in.
Also, A person’s Credit Score IS a risk meter. Insurance Risk includes both the property as well as the owner’s personal profile. Rates are subject to the perceived maintenance of a client. There is plenty of documentation that shows the lower credit score clients are higher maintenance, and are a higher moral risk based on ownership interest to maintain what they own. This becomes a fact when statistics are compiles every time.
Granholm has not been well advised. The best we can do is provide is find a middle ground versus convert to socialistic ways, which we all know will cost more in the end.
BTW – didn’t the State just increase the MCCA?????????????
These insurance companies are such “scammers” the only risk they have to take is how well a person drives as reflected in their driving record. Period! You cannot link credit scores in any way, shape or form to insurance risk. Risky behavior if it exists will possibly eventually show up in an accident claim the one item that costs the insurance company money in other words claims paid! These insurance companies colluded to devise a scheme so that they could bleed consumers out of more money in the form of premiums because in their greed they decided they weren’t getting enough money based on peoples driving record-their only true risk. It’s high time this underhanded and illegal practice was stopped and the insurance companies should be forced to retroactively return overpaid premiums that had rates set by this practice for as far back as they have implemented the practice!
The State of Michigan auto insurance is nothing more than a scam. I am not sure of other states insurance rates.
In most cases any one that has lapped insurance is paying double the normal rate. Most people are unempoyed out of work and have little money.
I have been disabled out of work wiyh little money. I did own a 1994 Mazda pick up but had to give it up because of insurance rates. Then I recieved a 2005 Dodge neon from my father.
The rate on my mazda pickup was $689.00 every six months. When I got the neon I went on line to find a cheeper rate. Progresive gave me insurance for $69.00 a month. Something I can afford. After a month they wanted to raise my rates to something that I could not afford ever. So I canceled my pollicy. Now I will necer own a vehicle ever again in my life at the rates they ask for.
I believe that all people should take a close look at what they are paying and protest all insuance companies in the hole USA.
Granholm will not be happy until she runs every last industry out of Michigan. How can we continue to elect people with no intelligence whatsoever?
She was elected by the Detroit area where the auto rates are highest. Don’t expect any intelligence to be flowing from that city. The outstate area has little to say on election day at this point. We have had some interestion governors, but this may well be the least competent one in our history.
Thats ok as an agent when the rates go up we make more money. Yeah! Get rid of those nasty credit score discounts. Lets make rates as high as we can.
With all the layoffs, reduced work weeks, and financial turmoil in peoples lives this is a great way for companies to increase premiums as the population struggles with family budgets.
Yes, every company in every industry that uses credit of any kind is looking to shaft the little guy. I’m so tired of that lame arguement. Insurance scores are an indicator that an insured is more or less likely to file a claim. This isn’t a feeling, it’s a statistical fact. Why does that fact become less valid when times are hard? When the cost of a product increases to us, it has to increase from us. That’ just logical, except in Florida and Michigan.
If the reason for disallowing the use of credit-based insurance scores is the inaccuracy of the underlying credit reports, shouldn’t the use of credit be banned for everything including loans, credit cards, etc?
If a credit report is rife with errors, it’s unfair to use it to judge someone’s credit worthiness too.
Aside from not fully understanding the justification and use of INSURANCE credit scores, the Michigan DOI fails to realize that insurance companies will lower their base rates upon review and it is justified. If INSURANCE credit scores go down for people in Michigan, most of the companies would indirectly have had a rate increase. If the claim frequency and severity to not change to the worse, then the companies would realize that their base rates are too high. Until Granholm came into office, Michigan was a competitive state. If she stops interfering, it is likely the companies would file rate reductions to remain competitive.
I’m an Insurance Agent as well…I will make more money if the credit score disapears as well….Go Michigan regulators!!!
First, not all insurance companies have been successful over the past few years by offering better rates to people with better credit scores. The failing economy has had a lot to do with that. The companies that HAVE been successful with credit scoring…I can tell you one company has had their AM Best rating go up. The argument is watching performance
and the results are still coming in.
Also, A person’s Credit Score IS a risk meter. Insurance Risk includes both the property as well as the owner’s personal profile. Rates are subject to the perceived maintenance of a client. There is plenty of documentation that shows the lower credit score clients are higher maintenance, and are a higher moral risk based on ownership interest to maintain what they own. This becomes a fact when statistics are compiles every time.
Granholm has not been well advised. The best we can do is provide is find a middle ground versus convert to socialistic ways, which we all know will cost more in the end.
BTW – didn’t the State just increase the MCCA?????????????
These insurance companies are such “scammers” the only risk they have to take is how well a person drives as reflected in their driving record. Period! You cannot link credit scores in any way, shape or form to insurance risk. Risky behavior if it exists will possibly eventually show up in an accident claim the one item that costs the insurance company money in other words claims paid! These insurance companies colluded to devise a scheme so that they could bleed consumers out of more money in the form of premiums because in their greed they decided they weren’t getting enough money based on peoples driving record-their only true risk. It’s high time this underhanded and illegal practice was stopped and the insurance companies should be forced to retroactively return overpaid premiums that had rates set by this practice for as far back as they have implemented the practice!
The State of Michigan auto insurance is nothing more than a scam. I am not sure of other states insurance rates.
In most cases any one that has lapped insurance is paying double the normal rate. Most people are unempoyed out of work and have little money.
I have been disabled out of work wiyh little money. I did own a 1994 Mazda pick up but had to give it up because of insurance rates. Then I recieved a 2005 Dodge neon from my father.
The rate on my mazda pickup was $689.00 every six months. When I got the neon I went on line to find a cheeper rate. Progresive gave me insurance for $69.00 a month. Something I can afford. After a month they wanted to raise my rates to something that I could not afford ever. So I canceled my pollicy. Now I will necer own a vehicle ever again in my life at the rates they ask for.
I believe that all people should take a close look at what they are paying and protest all insuance companies in the hole USA.