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credit score?

Question : credit score?
I’m sure you all have heard that people with poorer credit score file more claims, or not as good drivers. There is no such resources that anyone can see to prove this theory. We have to take the word of the insurance companies or the state. If there is such resource, please let me know. I have theory about credit score. 1) Insurance companies prefer people with better credit score because they are less likely to switch companies and shop around, hence worth more to the company. Funny, how when Colorado House rejected the ban on credit score, two insurance trade groups issued press releases, saying it was good for the consumers, yet they never talk to the consumers, they only represent the insurance companies. So we know using credit scores is good for insurance companies, but is it really good for consumers? What do you think?
Can you tell me more about the data from choicepoint. What is the source of the data? They may have used data from choicepoint, but I don’t believe choicepoint created the data to show people credit score affects your rate. I wasn’t even aware choicepoint knows your credit score, or cares.
Insurance commissioners in all 50 states have reviewed the data? First, are you sure credit score is used in all 50 states? Second, why would the vote be 17-26 in Colorado, did 17 people not see the data, or did they read it and think it was propaganda.
I don’t have bad credit, just thought it was an interesting question.
trade credit insurance

Best answer:

Answer by nycratkiller
i agree 100%

Credit score

This entry was posted by admin on September 30, 2010 at 11:54 pm, and is filed under Insurance. Follow any responses to this post through RSS 2.0.You can leave a response or trackback from your own site.

Comments (4)
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#1 written by Millionster 1 year ago

I think the higher your score the less likely you are to worry about it.

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#2 written by fth106 1 year ago

From my experience, it is those who have lower credit scores that ask these types of questions because they are paying more than someone they know who has better credit and a lower rate.

There is hard data that confirms that people with bad credit file more claims. The majority of people who have bad credit are people who have very little disposable income. That would mean that when their car needs brakes, new tires, or other safety related items, they are more likely to put that off than someone who had more money. Their homes aren’t kept up as well. Roof replacement, for instance is delayed until it starts to leak and thus a claim. Someone with more money is less likely to turn in small claims so that they can keep their premium down. Do you see the big picture here?

People complain about the insurance industry all of the time without a hint as to how they are regualted and controlled by the states. If you were the one to pay claims, I bet you would be just as eager to try and keep them to a minimum.

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#3 written by mbrcatz17 1 year ago

Welll, sure there is. I’ve seen the hard numbers. There’s a direct corrolation between credit score, and claims – lower scores have more paid out in claims, and a higher frequency of claims.

I actually HAVE a hard copy of some scoring/claims from a Choicepoint class I took years ago. Want a scan of it? Send me an email address that can take an attached file.

Will that satisfy you? I don’t think so.

So I’ll ALSO tell you that in all 50 states, insurance commissioners have reviewed the data, and found that the numbers substantiate credit scoring. Just like being a 16 year old driver, it substantiates higher rates.

I have NOT seen that people with better scores don’t shop around as much.

Is it good for consumers? Well, it’s better for consumers with a score over 700. They pay a lower rate. Otherwise, EVERYONE pays the higher rates. Do you want to pay the rates of a 16 year old boy? Of course not!

The point of insurance – is that like risks are lumped together. Some risks are charged lower rates, some higher, in accordance with how many losses a particular group of risks is likely to have.

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#4 written by Queen B 1 year ago

do you have bad credit?

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