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My auto+homeowner insurance recently increased because they said my credit score was lower this renewal. I pay my auto insurance for the whole year in advance,
by prirun 5y ago
My auto+homeowner insurance recently increased because they said my credit score was lower this renewal. I pay my auto insurance for the whole year in advance, so why do they give a shit what my credit score is?
It's just another gimmick excuse to charge more money. I'm guessing the excuse is necessary to bypass insurance regulations or something.
- HideousKojima 5y agoGiven the risk-taking activities of the poor vs. the rich, I don't doubt that some actuarial table shows that lower credit scores correlate with high risk profiles for liability insurance. Whether or not that's moral is another matter.
- nostromo 5y agoJust wait until they disallow using credit scores for determining who is credit worthy.
- FireBeyond 5y agoThankfully my state (and others are joining) disallow the use of credit scores for insurance. Which is good for me - my credit score dropped by nearly ~80 points when I bought a home last year, and 10 months later has only recovered 40 points.
- mint2 5y agoUnfortunately any individual company is not in a position to stop using credit, the only way to stop that practice is for the state regulators to step in due to public pressure. Do your civic duty as you see fit. A company cannot unilaterally drop credit as it will open them up to adverse section.
- astura 5y agoThis has actually nothing to do with your premium payment, it's an underwriting risk factor. Research has shown that people with high credit scores make less insurance claims. People who make less insurance claims pay less for insurance. In other words, credit score is a proxy for conscientiousness. Some people don't like that so a few states have outlawed using credit score in underwriting. Hawaii and Massachusetts specifically IIRC.