why does credit score affect insurance rates?
 

how can this be legal? i always knew gieco did it but i never actually read it, so now i check my motorcycle insurance from progressive and progressive actually has it in the fine print.

how the hell does my credit score make me a bigger risk on the road?

i can understand accidents, tickets and more expensive cars but this doesnt make sense to me.:mad:

If you are reckless and irresponsible with your financial information and money then why should they assume you will be responsible on the road.

I think all insurace companies do this now.. their armies of statisticians crunched the numbers and found there is a statistical correlation between people with bad credit and people with bad driving habits. On average people with bad credit end up costing insurance companies more money.

Not saying I agree with it, but thats the reasoning

:( i still dont see it...as well as i also found out that a lawyer also gets better insurance rates than a chef. this doesn tmake sense to me either

its shitty reasoning to me. peoples credit goes up and down every year but their driving habits dont. ughhhhh

i dont agree with it either and it makes me angry to see them find any little excuse to skyrocket prices more instead of finding ways to lower premiums

i never knew they did that, but it makes sense, people with bad credit are likely to take big risks, on and off the road.

Its probably based on your abilty to pay the premiums. With bad credit, you are more likely a higher risk to pay late. I have never seen this. I wonder if it assesed as a fee rather than a higher rate.

It all reflects on how responsible a person you are.

There are always exceptions to every rule of course, but insurance companies play the odds.

YARGH! It's most likely used to asses your ability to pay the rate, and deductible in the case of claim. Worse credit, less ability, more they want from you to offset risk.

Bc. your credit is a reflection of yourself.

if this is the case, your credit should go up by paying your insurance.

When they banned your balls from this board, did it affect your credit score?

Geico doesnt check your credit score... I've had em for a few years now... home and cars : )

Because people with bad credit are more likely to file claims.

good point. however its always a one way money thing here...big companies and the rich keep getting richer feeding off of us

my balls are deeply saddened by your hurtful remarks:2 cents:

they do, but they dont openly admit it. a good friend of mine is upper management in gieco and he admitted to it. they also rate you by your profession as well

Juicy and I both cried the day they banned your balls. I never meant to hurt you.

Ok I am about to break the silence.

Truth be told, ever since they passed the bankruptcy reform bill that made it very hard to forget your debts. Those with bad credit are looking for windfall lawsuits and purposely driving erratic in hopes of being in an accident where even if they only get 1/3rd of the injury claim after the lawsuit, they will be debt free.

There you have the truth now.

Its a scam.. I hate that method, its complete BS. I have good credit but
I have alot of credit, my scores are low due to that and not bad credit
So I pay more ?

Fuck that!

its cos if you have bad credit, you are driving around worrying about your bills and how much you owe etc etc and not concentrating on driving! eyes on the road!

Having been a licensed insurance agent and right hand of the dark underlord, Satan, I can answer with pinpoint certainty as to why your credit affects your insurance rates...



Very few people have good credit these days, actuarys can make numbers say anything they want, insurance companies want more money because their billions aren't enough, and finally, the country is ran by republicans.



There ya go.

I can see a relation between both (people with bad credits most likely have less money and will claim for less moneY).

That is all correct, and to add, if you have bad credit you are more likely to try to scam insurance companies for money.:2 cents:

Insurance companies make their money fucking you. I am still fighting Allstate for giving me <$200 for a destroyed house.

Fucking right, great non business related thread.

I pay mine in FULL, I don't even do the monthly payments. I could see maybe, if you did monthly payments that they would want to see your credit to get a feel if you would pay on time each month, i guess that is like financing since you can pay it upfront for less.... (not 100% sure about this).

But when i pay up front why the fuck do they need to pull my credit. Last I checked my credit score does not reflect my driving record.

This should be illegal. Luckily for me I have perfect credit. Unlucky for me, my wife does not. LOL so because of her bad credit i pay high car insurance, go fucking figure fucking thieves.

i hope you are joking.

well why not stop there why don't they get a copy of my fucking SAT scores and my GPA from college. I am sure if you did enough statistics then you could go crunh that and see that people in their childhood who scored below a 3.0 gpa are .002% more likley to get into an accident.

Point is they shouldnt be able to run your credit unless your are borrowing money. And your credit score shouldn't reflect a pay scale.

I understand some people pull credit scores for stuff like rentals (not something financed) but even in those cases, someone will owe someone else money, and the amount they pay rent is NOT based upon your score. " Oh look you scored a 650 we will charge you higher rent. "

do you smoke? do you drink. Why not have car insurance companies make you take blood test. if your colestoral is too high you should get a higher rate. You are more likely to have a heart attack while driving and cause an accident.

got to draw the line.... credit scores should be put back on the other side of the line.

That's the bullshit they want you to beleive. it's just another excuse to charge more for more profits.

your fucking nuts..... so at what score do you seperate the scamming car drivers faking accidents and the law abiding good driving citizens.

thats what they have insurance fruad for. I guess they should run my credit before i enter walmart because if i have a low score i am more likely to fake a fall and sue them. And to offset this cost, if i have a low score and they let me in, i will pay 50% more then what the sticker price is...

NOW the truth has been told. bingo.

This about sums it up
 

{} I understand some people pull credit scores for stuff like rentals (not something financed) but even in those cases, someone will owe someone else money, and the amount they pay rent is NOT based upon your score. " Oh look you scored a 650 we will charge you higher rent. " {}

I believe that the Zagat score of the restaurant they're cooking at is also correlated into their insurance rates.

Here is the answer...
The reason that some insurance companies use credit information is because they feel there is a direct correlation between consumer's credit history behaviors and expected claims that may occur. Therefore, they feel that people with better credit behavior are less likely to severe insurance losses.

i think everyone understands why they do it. ($$) I am saying how is it legal. Your Credit score isn't something that people can check just because they feel like it. And CREDIT score has to do with someone's CREDIT or ability to BORROW MONEY. That is it's purpose and when these assholes run it they also knock your score a few points for the inquiry.

What next? Life Insurance? Health Insurance? Disability Insurance? You have a low credit score therefore we think you are more likely to do die. How about shipping insurance. FED EX start fucking running your credit when you ship a package ? " sorry sir, you have a 625 credit rating, if you want insurance on this package you will have to pay $200 more then the price listed. "

Credit score should be reserved for things that concern ones CREDIT, not a factious fucking gage for a company to try to charge you more money.