Insurance

[Mcubed45]

I know, I know, there has been an untold number of posts about insurance.

BUT, you just might want to look into this.

there is an article in the September, 2015 issue of Consumer Reports that discusses how auto insurers determine policy prices. It's worse than you think.

and, since those same company insure our Spyders, you would do well to read the article if you can.

in a nutshell, with the exception of California, Hawaii, and Massachusetts, the insurance companies use a complex set of data from your credit history in addition to your driving record to determine your rates. The better your credit, the lower your rate. The article is well worth reading.

Then, we can start the revolution.

 

[jcasey]

That is nothing new. They been doing that a long time. If you pay your bills and have good credit score you are better off!opcorn:

 

[Chupaca]

Really..!!!

sounds like they want to make sure you can pay....but you can see they all run a credit check. Always check your credit score, they should ask before they do but you'll be surprised how many don't and it affects your score. :lecturef_smilie:

 

[ARtraveler]

Another good reason to watch your finances and don't get over extended on credit.

The situation impacts a lot of peoples lives. :thumbup:

 

[gkamer]

Freeze

sounds like they want to make sure you can pay....but you can see they all run a credit check. Always check your credit score, they should ask before they do but you'll be surprised how many don't and it affects your score. :lecturef_smilie:

What happens if you've frozen your credit reports to prevent ID thieves from opening credit in your name? Does the insurance company call you or something?

 

[Chupaca]

They should always ask but in your case they have no choice...

 

[Bob Denman]

Okay... let's say that you don't like them using credit reports as a basis for pricing strategies...
What would YOU suggest that they use??? :dontknow:
This is nothing new: it's been going on for at least 20 years now...

 

[IdahoMtnSpyder]

This is a case of where one aspect of a person's life is an indicator of other aspects of their life. A good credit rating indicates the person takes responsibility for their finances seriously. That attitude will be reflected in other aspects of their life, such as driving habits. I know, there are exceptions, and exceptional circumstances, but as a general rule it's good. Kind of like when a guy said to me one time, "I can look at your shoes and tell you what your car looks like!" Too true to be funny.

 

[Bob Denman]

:clap: :agree:

 

[robmorg]

Okay... let's say that you don't like them using credit reports as a basis for pricing strategies...
What would YOU suggest that they use??? :dontknow:
This is nothing new: it's been going on for at least 20 years now...

I would have thought they'd base rates on loss experience - both personal and geographical (for your area), and the type of car you drive. I'm not sure I see the relationship between credit scores and auto insurance rates. If you don't pay, they'll just cancel your policy. Is it really that they think folks with better credit scores are more responsible people, and therefore likely to have fewer accidents?

I have an excellent credit score (and a pretty good driving record), but I'm not all that responsible. :sour: (And I only polish my shoes twice a year. Been workin' on the same tin of Kiwi Shoe Polish since 1987.)

 

[Bob Denman]

Losses are always used to determine rates as well...
But they're becoming far more... sneaky about it.
In the Good Old Days; they'd raise your rates for an accident if you were considered to be "At-Fault: (as defined by the insurance rules in your State), and met certain threshold criteria...
Now; they don't "Raise your rates": they "Re-Tier" you! :shocked:
What is that? :gaah:
All decent-sized insurance companies now use rate plans that place you in a particular Tier. (That is based upon all of the rating factors that they use...)
If you have "something" happen; that will change the Tier that your are eligible for, and they may move you...
NOTE: I didn't say "surcharge"... that's not what this is...
But it SURE feels like it! :banghead:
They use multi-tiering in order to (As they say it...) try and provide the lowest rates possible, for the best possible risks. They are protecting their rating structure... :yikes:

nojoke

 

[robmorg]

Makes sense, I guess ...from their standpoint. Thanks. :thumbup:

 

[Highwayman2013]

These days they check your credit score when you apply for a job.

 

[IWN2RYD]

That report is only a partial truth. Specifically looking at Washington State there are many factors bunddled into one rate. Each impacts the rate differently, and as each one improves/decreases/increases it effect most of the others...

Age
The "actual" vin number of the vehicle (Just because the car is the same model, does not mean it has the same features as another, creating a cost difference at the time of a loss).
The last four digits of the garaging address (Meaning, 12345-1234) for loss history of the area (Yes, you pay for the actual losses of others in the rating per law)
Driving history
Credit rating
How many drivers are in the household/on the policy
How many vehicles are on the policy (And I am not speaking about multi car discount, many carriers here charge less for each car added and it lowers the cost of those already on the policy. It creates part time drivers for # of cars more than drivers in some cases)
Coverage choices (Yep, many offer a better rate for $500 CSL and an Umbrella than they do for $250/500/100 and an umbrella as an example)
Annual mileage
Safety/security features factory or aftermarket
If a home owner or renter
Depending on type of employment
Type of use of each vehicle


I could continue, but you get the point. Insurance is getting pretty scientific.

 

[Bob Denman]

:agree: Thank you... :clap: :thumbup: