credit score and car insurance

[armand.hawley]

So It's true that credit scores affect car insurance. Wonder what they'll think up of next!

 

[ssawka]

Actually it makes perfect sense to me. I know this is not always the case, so please don't flame me, but a good credit score is a good indication that:

1. You will keep up-to-date with your premiums.
2. You are less likely to attempt insurance fraud.

I'm not saying this is true in all cases, but selling insurance is like gambling, you have to know your odds to know what kind of a risk you are willing to take.

 

[Golf4food]

People with low credit scores are statistically more likely to file claims and/or miss payments = higher risk for the insurer. My only problem is that so many credit reports have errors and fixing them is so difficult.

 

[debbywilder]

So many people make a living off fraudulent Texas car insurance claims, I see no reason why an insurance company cannot run a credit check to see know about a person’s creditworthiness before they insure him/her.

 

[dfchelbay]

I just can't help feel bad for those whose credit score was bruised or damaged due to a catastrophic event. What happens to the 40 or 50 year old who has always paid their insurance premiums and never made a claim, but last year they fell off a roof and broke a leg or back or something. This person couldn't work until healed, i.e. couldn't pay all the bills coming in...in turn damaging his credit. This person is seen/looked at by insurance companies the same way as a dead beat that doesn't pay bills, makes false claims. This person will be denied or price gauged by the insurance company because of one moment, one event in his/her life. Much the same as a person who loses their job and cannot find another one right away. Some of their monthly bills are late for a period of time until they regain their employed status. This person's credit score gets bruised, and will be penalized by the insurance companies , even though they never made a claim, and always paid their insurance premiums.

This is what I have a problem with, when it comes to credit scores and insurance companies.

 

[bettymae1121]

I don't think that's true in all states, I'm pretty sure they don't do that in IL, and DH had horrible credit years ago and didn't have trouble getting good insurance when he lived in PA.