Auto insurance: why do they want to check my credit report?
I wanted to shop around for auto insurance to make sure I wasn't over-paying, however they adjectives want to check my credit report. I have great credit but that's not the point, I feel it's a privacy issue, my credit report have nothing to do with my driving! I will most imagined keep my current insurance company and pay somewhat more just for the principle.
Is there any auto insurance moved out that doesn't invade your privacy anymore?
Doesn't that bother anybody else that companies have the "right" to access your credit report just because they want use any excuses to tilt your premiums?
Answers:
your credit report determines how much you clear
How is this a thing of privacy? They know that if you have a higher credit rack up, you are more responsible and less likely to grasp into an accident. They don't have any "right" to access your credit report. But after again, you don't have any "right" to buy insurance from them either.
When insurance sets rates, it's a matter of risk and statistics. If you're over 40, married, own a house, work at a white collar job, and own good credit you are a better risk than a 20 year old within construction who sky dives as a hobby (risk taker) and doesn't pay his bills.
So that's part of the use. The other part is are they going to let you settle up monthly, or demand full payment up front, and your credit report tell that story too.
Statistically, those with poor credit are more likely to not verbs their cars, leading to accidents and claims.
Related Questions:
Is there any auto insurance moved out that doesn't invade your privacy anymore?
Doesn't that bother anybody else that companies have the "right" to access your credit report just because they want use any excuses to tilt your premiums?
Answers:
your credit report determines how much you clear
How is this a thing of privacy? They know that if you have a higher credit rack up, you are more responsible and less likely to grasp into an accident. They don't have any "right" to access your credit report. But after again, you don't have any "right" to buy insurance from them either.
When insurance sets rates, it's a matter of risk and statistics. If you're over 40, married, own a house, work at a white collar job, and own good credit you are a better risk than a 20 year old within construction who sky dives as a hobby (risk taker) and doesn't pay his bills.
So that's part of the use. The other part is are they going to let you settle up monthly, or demand full payment up front, and your credit report tell that story too.
Statistically, those with poor credit are more likely to not verbs their cars, leading to accidents and claims.
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