Insurance...

[Kimberly 0]

Many insurance companies also check your credit history.  The lower your credit score is the higher your rates will be!

Those insurance Companies had better watch that. I just received a letter in the mail about a Class Action Law Suit against Progressive. They too were basing their rates on personal credit scores. This may set a president.

Many companies are now doing this. I was working for an insurance agent when that insurance company started doing this. They gave lots of rah rah information about why this was good for the company. However, there were no protections in place for someone who had had their identity stolen or if their credit report was incorrect.

 

Make sure both the husband and wife's credit scores are checked. This can cause a difference of up to 20% or sometimes more if one has significantly better credit than the other.

 

Unless you have A+ credit you're usually better off with a company that doesn't use credit scores.

[grannyguru 0]

Many years ago I was an insurance agent. Checking credit is something that has been done by many companies for different products they offer. It began with life insurance.

 

You are right that it's been spreading even into the rates on auto insurance. (Kick 'em while they're down!)... :ph34r: but the real reason is credit problems are a risk factor: people with problems are less able to take care of things and more likely to be exposed to risks.

 

With downsizing etc. it may become a less useful indication of risk, purely because the majority will be effected.

 

As a person who has been in both places, though, I'm glad to see someone challenge it, even if it is a real risk factor, because I don't like the way credit report companies operate.

 

 

Alice

[Mr.B 0]

even if it is a real risk factor

 

Alice

Alice how does my credit, my ability to pay or not pay my bills, have anything to do with the way I drive my car or what may or may not happen to my house? Sorry I just really despise insurance companies. They are more than happy to take your money every month and look for every reason under the sun to charge you more money, but when it comes time to pay their claims you need a lawyer 9 out of 10 times to get them to do the right thing.

 

~Mr.B

[MichaelC 160]

The insurance industry as a whole is being questioned as to the validity of their claims that bad credit justifies higher premiums. In fact, here in FL I believe the state legislature is debating the issue and whether or not to outlaw the practice. May even be considered for debate on the national level, also. We'll see......

[grannyguru 0]

I agree;

 

I despise insurance companies, credit score keepers, and banks, to name just a few.

 

My insurance clients liked me so much because I educated them, I cared about them, I was good to them. Unfortunately that made it difficult for me to get them to understand that the Company was ONLY their friend when someone was suing them.

 

When it's the Company having to pay them, it is the job of the Company adjuster to be careful not to pay them a penny more than required. Tony will understand this It's called being Thrifty with the Stockholder's money.

 

Here's what credit has to do with risk:

 

I am a great driver; a wonderful risk.... even though I am now temporarily extremely poor. But I have been rich and I have been poor, and I can tell you: rich is a heck of a lot easier and more fun!

 

But being poor, I haven't been able to take care of things, though haven't gotten way behind on most bills. Went out almost on the street rather than get behind in rent. Am frequently upset; am jittery because I am so vulnerable. For me, car trouble in an hour away means I lose the car, where when I had money and great credit, all car trouble meant was a brief inconvenience while someone else towed and repaired the car, after having someone bring me a rental.

 

So when the car hiccups, I freak out, and that's distracting. Those times when it looks like bad things are really going to happen, I'm upset, and that's distracting.

 

Having bad credit, if you are not a jerk and it just happened to you, still means you cannot paint, repair, etc. as you might want to. Places fall apart, not because you are a jerk, but because you are poor.

 

I cut my grass with a push mower and a pair of scissors, but it still looked like hell because it wasn't really grass, but short weeds.

 

Having bad credit may not always mean you are poor. Certainly it does not always mean you are some sort of a jerk. (After all, here I am a saint!) But when it does not mean you are a jerk, it means at least something bad succeeded in incapacitating you. Happened once, may happen again.

 

Translation: you might not be able to meet the needs. Plus, as mentioned above, may mean you are understandably stressed and possibly suddenly vulnerable, and might freak out.

 

Risk does not mean these things WILL happen; it means over a large group of people with those factors, it WILL probably happen to a certain percentage of them.

 

When the same people, in stable situations, could be relied upon. ie. not be risks.

 

.............................

 

Since I'm saying this, it's important to note for those here working and so much wanting to become un-poor...or at least to leave the slave trade.... that being poor, having bad credit, etc. DOES NOT MEAN you cannot become rich. Just as my having been well-off did not mean I could not become poor...

 

I'm the same person, either way, but I sure don't look like it to banks. Plus it's true I'm a heck of a lot more nervous when poor!

 

I'm letting you know I'm poor so you will know I'm not some privileged person looking down on those with "bad credit"... or supporting banks, credit agencies, or insurance companies.

 

I hope they lose in court.

 

In fact, my situation here is the only reason I haven't invited Michael here. He goes out of his way to be supportive, and deserves the best. Shortly we will be able to laugh about it all, and THEN I'll invite him here.

 

Although I really AM privileged to have Michael and all you folks on the forum here. This IS the forum where even us 'por folk' can actually get rich doing real estate!

 

 

Hope this helps.

 

 

Alice

[Mr.B 0]

Hmm I'm not sure that I understood that explanation at all. However, if your saying that being poor means that I will be a distracted driver, what about the rich guy speeding through traffic to get to that important meeting while sipping on a Latte and talking on his cell phone?

 

Its really just an excuse to charge more money.

 

~Mr.B

[Adam King (MI) 1]

Kimberly,

 

Adam,

 

It sounds like the Landlords Policy is the only one your seller has with that company. If so, it will be a lot more. Most likely for the best rates, the seller needs the Landlord Policy to be with the same company that has their new Homeowners Policy.

 

In most cases, the home owner's company doesn't do landlord policies. And when they do...holy crap....look out! But I don't disagree, there's gotta be someone out there!

It's just some kind of enigma.

Thanks