Poor credit can double or triple auto insurance rates in many states

[Insurance Forums Staff]

Insurance Forums Staff submitted a new article

Poor credit can double or triple auto insurance rates in many states

New study finds 97% of U.S. insurance companies use credit-based insurance scores to determine auto premiums in all but three states. Michigan has highest disparity while North Carolina has the smallest increase for people with poor credit.

Continue reading the Original Article.

 

[Glen Shelton]

The 'full state-by-state report' - is a broken link

 

[adjusterjack]

There's a second link in the article that works. Try this:

Study: Poor Credit Can Double Auto Insurance Rates

The insurance industry is also getting credit reports for homeowners and renters policies. Probably even for business insurance.

I'm guessing that auto insurance is getting the press because of the much bigger impact that credit has on rates.

 

[kennyb3030]

Good Stuff !!

 

[fed up]

My experience is that when state's do not allow credit to be a determining factor, the insurance companies use other means to justify their rates such as number of residents in household. My argument to credit use is that it is all statistic driven; have low credit, more likely to file a claim for minor things. If 25% of all fatal accidents are caused by drunk drivers, why don't we focus on the 75% of sober drivers causing fatal accidents? Insurance companies should structure their deductibles around good vs bad credit. The lower your score the higher your deductible should be. There would now be a means for lower credit people to save some money in premium and have the ability to raise their scores by paying off their debt

 

[adjusterjack]

My argument to credit use is that it is all statistic driven

Everything about any kind of insurance is statistic driven.

If 25% of all fatal accidents are caused by drunk drivers, why don't we focus on the 75% of sober drivers causing fatal accidents?

Sober drivers get surcharged for causing accidents. Drunk drivers get more severe financial punishment because they are criminals.

Insurance companies should structure their deductibles around good vs bad credit. The lower your score the higher your deductible should be.

That's actually not a bad idea.

 

[marindependent]

" California, Massachusetts and Hawaii, where the practice is not allowed " - California is doing it right -in my opinion.