It is a rippedoff, do you actually think that AUTO INSURANCE INDUSTRY is going out of their way to reduce rates. I been in the auto insurance business for 30yrs, owned ofices in 3 pacific northwest states total of 13 offices “Independent agent” Credit has nothing to do with a persons driving ability. The individuals who pushed this bill thru the insurance lobbies got to them. Believe me the CONSUMER got the short end of this deal.
How did the consumer get the short end? The company is required to rerun credit at the customer’s request and they must lower the premium if credit has improved but can’t raise premium if credit has gotten worse. Sounds like advantage consumer to me.
BTW, study after study has shown a strong correlation (not a cause and effect, but a correlation) between credit history and propensity to file auto claims.
this is what gets me, as an industry we think that because of their credit score, they are less likely to file a claim for an accident. excuse me, but is that not what we purchased insurance for is to imdemnify our loss? i could have a great score but be a lousy driver and have better rates then a person with a low score but great driving. we can all make statistics look the way we want. it goes back to the old cliche, is that cup 1/2 empty or 1/2 full?
Statistically, those with better credit file fewer claims. Credit, like every other rating variable, is not foolproof but on average, is a very good predictive tool.
Not every teenage boy wrecks his parent car and not every middle aged married woman has a pristine driving record but we still rate on age, sex and marital status and charge the teenage boy much, much more than the married woman.
The lousy driver who has accidents or tickets will be charged more for that. And the driver with lousy credit will be charged more for that. The goal is to match premium to risk, not rip anyone off. That’s why we use many variables including driving record and credit.
I was screwed over by this, I’m 50 years old , very good driver, no tickets in 30 years, no dui’s ever. 0 insurance claims. then do to shitty economy I loose my job, endup with a bankruptcy. start over, acquire a new vehicle, new insurance policy triple what it was only 9 months earlier. so yea thanks a lot…
It is a rippedoff, do you actually think that AUTO INSURANCE INDUSTRY is going out of their way to reduce rates. I been in the auto insurance business for 30yrs, owned ofices in 3 pacific northwest states total of 13 offices “Independent agent” Credit has nothing to do with a persons driving ability. The individuals who pushed this bill thru the insurance lobbies got to them. Believe me the CONSUMER got the short end of this deal.
How did the consumer get the short end? The company is required to rerun credit at the customer’s request and they must lower the premium if credit has improved but can’t raise premium if credit has gotten worse. Sounds like advantage consumer to me.
BTW, study after study has shown a strong correlation (not a cause and effect, but a correlation) between credit history and propensity to file auto claims.
this is what gets me, as an industry we think that because of their credit score, they are less likely to file a claim for an accident. excuse me, but is that not what we purchased insurance for is to imdemnify our loss? i could have a great score but be a lousy driver and have better rates then a person with a low score but great driving. we can all make statistics look the way we want. it goes back to the old cliche, is that cup 1/2 empty or 1/2 full?
Statistically, those with better credit file fewer claims. Credit, like every other rating variable, is not foolproof but on average, is a very good predictive tool.
Not every teenage boy wrecks his parent car and not every middle aged married woman has a pristine driving record but we still rate on age, sex and marital status and charge the teenage boy much, much more than the married woman.
The lousy driver who has accidents or tickets will be charged more for that. And the driver with lousy credit will be charged more for that. The goal is to match premium to risk, not rip anyone off. That’s why we use many variables including driving record and credit.
I was screwed over by this, I’m 50 years old , very good driver, no tickets in 30 years, no dui’s ever. 0 insurance claims. then do to shitty economy I loose my job, endup with a bankruptcy. start over, acquire a new vehicle, new insurance policy triple what it was only 9 months earlier. so yea thanks a lot…