PaulF

I have to agree with Qrazy...take a look at my post above...my driving record is excellent, yet I pull higher rates because of so-so credit due to uncontrollable circumstances.

It needs to be looked at differently. It would be one thing if it showed on my credit report that I didn't pay my insurance on time, I could see that. But there is no basis for me to have higher insurance rates.

I'm not saying that your credit score should NEVER be involved, but it shouldn't be the primary factor for assessing rates.

REDFIRESNAKE

What's next? They take away your driver's license for bad or poor credit? Sounds like they are cashing in on those 1 million plus people filing for bankruptcy every year in this country. We have the credit card companies to thank for that! All those offers in your mailbox every month! Outrageous lines of credit- even for teens!
Remember! Credit card companies are not your friend! And you do them a favor by using their card, not the other way around! We should start charging them a fee everytime we use their cards!

PaulF

Yeah, I learned the hard way when I was 20 that you don't keep a balance on your credit card and pay the minimum. If you use your card, you better have enough cash to pay it off in full in one or two payments, max.

A card is not a toy!

ace0215

it's not your personal information, it's your credit report. It is used anytime you apply for a loan, so why is it that far fetched that it could not be used to determine car insurance rates?

Qrazy

I am saying they should NEVER use it....Think of it like this.....If I am late paying my insurance, they drop me...FLAT OUT....They don't have to cover any damages as my policy has been terminated. There is a nice little reminder on the back of my policy, stating if you stop payment/late your policy will become null and void as of midnight such and such a date...... So is my credit report going to make ANY difference...NO....Its even better in states like CT, where by law you MUST carry liability at a minimum...So they will get your money, whether you like it or not, whether you are a good driver or not, and it is totally up to them how much you will pay....Now throw in some bad credit, and whammo it's more money for them, even though it has no bearing on how you drive, or how lucky/unlucky you will be behind the wheel...
Told you not to get me going on this topic....
Peace...

ace0215

what are you smoking? credit card companies are a business, albeit a profitable one. They loan you money, you pay it back. What do you mean charge them a fee everytime we use their cards? You don't make any sense!

Qrazy

it's not your personal information, it's your credit report. It is used anytime you apply for a loan, so why is it that far fetched that it could not be used to determine car insurance rates? [/b][/quote]
It has your name, your address, your social security number(Even my medical insurance is now changing my account number to NOT be my social security number for my protection), what credit lines you have including all the account numbers to your credit card/cards...Talk about identity theft waiting to happen, some flunky working for an insurance company has all he needs....
Seems pretty personal to me....

ace0215

I am saying they should NEVER use it....Think of it like this.....If I am late paying my insurance, they drop me...FLAT OUT....They don't have to cover any damages as my policy has been terminated. There is a nice little reminder on the back of my policy, stating if you stop payment/late your policy will become null and void as of midnight such and such a date...... So is my credit report going to make ANY difference...NO....Its even better in states like CT, where by law you MUST carry liability at a minimum...So they will get your money, whether you like it or not, whether you are a good driver or not, and it is totally up to them how much you will pay....Now throw in some bad credit, and whammo it's more money for them, even though it has no bearing on how you drive, or how lucky/unlucky you will be behind the wheel...
Told you not to get me going on this topic....
Peace... [/b][/quote]
it absolutely has a bearing. It is analogous to the same way insurance companies rate vehicles. Each vehicle is given a rating based certain data like safety/speed etc. That's why certain vehicles cost more to insure. Just because you have a clean driving record doesn't make it cheaper to insure the car. BUT if you don't have a clean record then they will add on to the rate.

PaulF

Qrazy,

Hey, don't get me wrong, I agree with you. I don't think it shoud be used at all, but I don't think that is going to happen anymore. All I'm saying is that since we know it's going to be used, it should be used to a lesser extent.

Just follow my logic here:

The insurance company gets a request for a quote for you, so they follow this process:

1. Pull driving record, if record is good (doesn't have to be perfect, within a set range), go to step two, if not go to step 3.
2. Issue Excellent Driver lower rates.
3. Pull credit history to review outstanding credit issues with other Insurance companies ONLY. If no issues with other Insurance issues, go to step 4, if there are issues, go to step 5.
4. Issue rates in line with Fair to Good driving records.
5. Issue rates in line with Fair to Good driving records with additional one time fee assessed due to outsanding credit issues.

This way, it's a tier system and it's based ONLY on your driving record and credit history with other Insurance companies. That way it keeps it relevant.

ace0215

What I am saying is that it is the same ifo that gets provided to anyone else that does a credit check. Heck, they even do credit checks for cell phone bills, gas & electric bills etc.

ace0215

why would you base it only on other insurance companies? Car loans don't base it on only other car loans?

Stadifer

Ummmm... You give your address, social, and most other pertinent information when get car insurance. Last time I checked my credit report the full account number is not available, just the final four digits?

As far as the monsterous amount of mail you get with credit card offers you can actually stop that. Go to any of the major credit agencies and you can request to not recieve any credit offers. It's not difficult I did it two years ago and haven't gotten an offer since.

As far as people with bad credit... Maybe this will just teach people not to be stupid about their credit. Maybe it will help reduce the amount of bankruptcies in this country (which can be had like candy) and make this country more responsible. I have no sorrow for the person that went out and screwed up their credit because they have no self control or personal responsbility. Now I will feel bad for the person that got their credit raked through the coles because of a divorce or identity theft. But in most cases there are methods and means to get these issues corrected to minimize their impact so it won't prevent you from doing other things in life.

Seems to me people that complain about credit being used for car insurance are on the same playing field as people that complain about photoradar at stop lights. "It's not fair if the cop doesn't give me a ticket! It's against my right to privacy!" (aka I want to run that red light but the photoradar stops me from doing it).

Just my $.02 on the issue... Oh and BTW I screwed up plenty when I was a teenager with credit... I fixed it and have a great credit score now.

PaulF

That's not totally true. If you have a good history with your car payments, but so-so history with some other minor things, the lender WILL hold the car payment history with greater relevance.

Qrazy

The more I read this comment the more it makes my point...Read wht you wrote, and tell me how my credit report has any bearing on what I should pay for CAR insurance......If your point is I am more likely to file a claim because of my credit you should be a politician....CAUSE THEY ARE NOT RELATED! I guess I am just paranoid, you know the whole big brother thing. But my scenario I posted earlier could be just as analogous as using your credit report. And who really thinks you should have a physical examination to get an CAR insurance quote....

Good discussion though

Stadifer

Ohhh and credit scores for insurance rates can be your friend too. I have a minor at-fault wreck (backed into someone when they came out of nowhere) and thanks to a high credit score it actually reduced my overall rate in the long run.

PaulF

LOL...we're just letting it all hang out now, aren't we? lol

Hey, as far as I'm concerned, if you're speeding and get caught, I don't care how you got caught. Same with running a red light. That ticket might make you think twice and not do it again....which just might stop someone from getting killed. That's no infringement, as far as I'm concerned, that's just being smart.

ace0215

yes, but they look at the whole thing and it all still plays a factor

Qrazy

What I am saying is that it is the same ifo that gets provided to anyone else that does a credit check. Heck, they even do credit checks for cell phone bills, gas & electric bills etc. [/b][/quote]
There is a big difference here, and they didn't always do a credit check for these services. The difference in these cases, and loans, is the fact that each of these companies is giving you in advance some valuable commodity...Ie...Loans, they give you $28,000 for your new Mustang up front, with a promise to pay. Electric, they give you electricity up front, you pay for what you use. Cell phone, they give you the bandwidth up front, you pay for what you use...Insurance, you just pay them...PERIOD....If you never file a claim, you get nothing in return (most insurance companies). The point is you are getting coverage, but not a tangible commodity. TO me it's different......

Stadifer

Let's just say I know a few people that complain about the credit report and car insurance thing as well as the photoradar things. In both cases they have backwards logic about it.

Or you could just say I'm an arrogant & opinionated. Either way works

ace0215

The more I read this comment the more it makes my point...Read wht you wrote, and tell me how my credit report has any bearing on what I should pay for CAR insurance......If your point is I am more likely to file a claim because of my credit you should be a politician....CAUSE THEY ARE NOT RELATED! I guess I am just paranoid, you know the whole big brother thing. But my scenario I posted earlier could be just as analogous as using your credit report. And who really thinks you should have a physical examination to get an CAR insurance quote....

Good discussion though [/b][/quote]
no what i meant was that statistically bad credit = irresponsibility. And statistically this "irresponsibility" correlates to irresposibility on the road. Thus the higher rates. Now obviously this does not apply to everyone, but that's just how it works. That is how it is analogous to rating vehicles. Just because you drive a vehicle that is considered a high risk does not mean you will have an accident or get tickets, but you will still be charged the higher risk rate regardless of your driving record.