why do insurance companies run your credit report?
KNOWLEDGE IS POWER asked:
how did this bulls…. ever get passed. so i want car insurance and had 1 ticket in 6 years so that does not really count and my insurance started at $500 for 6 months then I hit the submit button and the final price says because of your credit rating the price has been increased to $1000 every 6 months and I almost punched my monitor. what the f… does my credit have to do with my car insurance?? so I have a great driving record and no accidents and 1 ticket in 11 years and none in 6 but because my job went bankrupt and folded i can not pay my bills and filed bankruptcy. what does that have to do with car insurance. I can see if my report said filing a false claim or theft or something like that. we as Americans should fight this crap.
yeah I just read something about that saying that for some reason ppl with bad credit have 5 times as many claims and/or their vehicles come up missing then ppl with great credit but still it should be on a individual basics. if you are going to run my credit then go over it and see why my credit is bad you get my point. filing bankruptcy does not make me a bad driver or have anything what so ever to do with my driving ability.
Craig
how did this bulls…. ever get passed. so i want car insurance and had 1 ticket in 6 years so that does not really count and my insurance started at $500 for 6 months then I hit the submit button and the final price says because of your credit rating the price has been increased to $1000 every 6 months and I almost punched my monitor. what the f… does my credit have to do with my car insurance?? so I have a great driving record and no accidents and 1 ticket in 11 years and none in 6 but because my job went bankrupt and folded i can not pay my bills and filed bankruptcy. what does that have to do with car insurance. I can see if my report said filing a false claim or theft or something like that. we as Americans should fight this crap.
yeah I just read something about that saying that for some reason ppl with bad credit have 5 times as many claims and/or their vehicles come up missing then ppl with great credit but still it should be on a individual basics. if you are going to run my credit then go over it and see why my credit is bad you get my point. filing bankruptcy does not make me a bad driver or have anything what so ever to do with my driving ability.
Craig
Stephanie
Because there’s a statistical correlation between credit score and insurance claim frequency.
Vernon
There are two concerns. First, can you/will you pay the premium in full and on time. Second, claims experience. Statistically, a low credit score is often correlated with both late/short/non-payment and with increased claims. Since the insurance companies can prove the statistics and since both have direct bearing on their business, it is not unlawful. (It’s similar to the very high rate for new drivers, who are statistically likely to have an expensive accident within the first 24 months of licensure.) Basically, it comes down to the math. Sorry!
Suzanne
It has nothing to do with law. Insurers enter into contracts. They can charge whatever the market will bear — whatever people will agree to pay. I suppose that they feel that if you are generally irresponsible then you are a greater risk. Similarly, you are free to check out the company and see if they pay their own bills on time, and decide to business with them based on that.