Credit Scoring Premium Effect

[gambrinus]

We all know that credit scoring has an effect on premium. What company have you found that tends to weigh a "less than stellar" credit score a bit more gently than others? Our agency deals with all ( most ) of the usual suspects: Safeco, Hartford, Allied, ASI, Pacific Spec, Travelers, Met... Is there that smaller carrier that doesn't hit you quite so hard if that score isn't that great???

 

[gambrinus]

Is this thing on?? Anyone? Any ideas as to which carriers tend to look at poor credit a bit less harshly than others??

 

[Aram Fingal]

Safeco seems to be a little more forgiving for the bad credit. And then conversely not that stellar for people with good credit.

 

[djs]

Carriers in California seem to not worry to much about credit.... oh yeah, we don't use credit scoring here....

Seriously though, its probably very geographical. Answers from anyone out of state won't be very meaningful. Even in State, I would imagine it would vary in different parts as other factors are more or less prevalent.

And as Aram eluded to, carriers that cater to those with some credit dings tend not to be good for those with good credit, just because of the way the curve slopes.

You pretty much have to run a few qoutes through carriers to find out the 'best', but then age changes on the driver and everything changes anyway.

If there is an offline rating tool that uses multiple carriers, you can usually figure this out. Not sure what is available in CO though. CA, I would recommend FSC (now Vertafore), though there are a few others.

Dan

 

[gambrinus]

Did some more digging and found that it not only varies state to state, but varies from one fiscal quarter to the next. It seems that while carriers have to file rates with the state, they are free to "adjust" their credit scoring matrix as they wish.

 

[djs]

Most subjective rating factors can be varied in a similar manner. Its part of the way carriers manage exposure to certain areas.

This is part of the reason there is never a single answer to who is the best/cheapest/easiest whatever. It varies pretty quickly depending on a lot of factors, most of which are totally unknown to agents/consumers.

Dan