Soon the 2 will go hand-in-hand. This is something I am totally against, but have no control over....I only write the policies!! For now, this will only affect auto insurance, but since auto is part of the essential insurance act I really-really think using someones credit score to determine premium rates is beyond ridiculous!!
If you are under 25, have caused accidents and/or have points on your license for bad driving, I can see having higher insurance rates. But, I guess I am having a hard time understanding the relationship between your credit score and the probability of getting in an accident. That news stinks. My credit isn't the greatest but I feel I am a very safe driver. I'm one of those punks who actually go the posted speed limit. I've only been in one accident (knock on wood) and it wasn't my fault - I could not do anything to avoid it (the person decided to go from a stop and slammed right into the side of my truck ). You don't write for MEEMIC, do you? Is this going to be the norm with ALL insurance companies?
Many of the big name insurance companies are already doing this. From what I understand, you are considered "high risk" if you are consistently late in paying your other bills. Most insurance companies prefer to write the cream of the crop...those who have no or very few claims, own a home and have good credit. These people are less likely to "defect" once the policy has been written, and they will more than likely invest in other insurance as well....ie. life/home/health...or even better...financial products!!
See...my bills are all paid on time. I just have a high debt to income ratio that pulls down my credit score. I currently have insurance policies with three different companies. Why? Because my auto agency wouldn't insure my house (it's over 100 years old) and they don't insure businesses. My home agency couldn't insure our type of business. So, to another agency for the business we go. I'd prefer to have one company and deal with one agent, but it just didn't work out that way. I heard a few years ago about insurance companies putting computers in your car to see how fast you drive and how much you drive and where. It would invade your privacy, but if it could lower my rate - I'd do it!
Having your home and auto with 1 company can definately save you money. The fact that your home is over 100 years old shouldn't be a factor to insure it, as long as everything has been updated?? Of course I was also hoping to insure everything at the company I work for, I'm saving a nice amount by having my home and auto bundled her, but the business insurance doesn't make a difference. After a lot of digging, I was able to get one of my B.O.P. (business-owner-policies) insured here, but my other one is with a different company, the main reason being that the minute your biz requires you to leave your home and go into someone elses, you become a HUGE underwriting risk. Since you're also in MI you understand that we are paying much higher rates because we are a no-fault state...sometimes I wonder if the premiums are really worth it!
I love my auto insurance company. They have the best rates. When I asked, they said they will only insure houses newer than 1950. :-/
This may sound like a no-brainer but many people don’t realize that driving safely is very important. Not only for your general health and well being but for your pocket book. Simply put, insurance companies love safe drivers and reward them with the best rates. They also penalize those that file excessive claims. Therefore do your best to avoid accident claims at all costs, for me just got new full coverage premium for $220 per month my lowest for years look at http://www.netquote.com i got to see over a hundred diff. current insurance price. <<affiliate link removed>>
I don't think it's fair at all for them to use your credit score to determine insurance rates in any way. What do the two have to do with each other really? If you don't pay your insurance premiums, they'll just not cover you for any of the time during your policy, even if your check bounces weeks after you get "coverage". I used to work at an insurance agency years ago and I remember a big deal about some idiot who had received a letter from the company saying he wasn't insured because of some problem (he was a high-risk individual and I guess the company decided they didn't want him, even though they told us they would take him at first). The letter was very clear to indicate that he didn't have car insurance at all. So what does he do? Gets in his car, mad as heck, drives down to our office and hits some poor guy on a motorcycle on the way in. Anyway, I digress. The point is that if you pay your insurance premiums, they have no right to use a credit score to say yes or no to coverage. Some people have rotten credit by no fault of their own, and I think this will just lead to another excuse to charge even more for young drivers (who tend not to have a lot of credit built up).
