Are here any motor insurance companies that don't use a social collateral # when determining your rates?
I think it is horrible that they base vehicle insurance rates on your credit history. Having bad credit doesn't make you a discouraging driver. If they are worried about you paying the bill, why do they make it HIGHER if you hold bad credit? Isn't that a little messed up?
Are within any companies that don't do this?
Answers:
There probably are but most insurance companies now underpinning part of the rating on your credit score because they own found that a lower credit rating will be a higher risk for them, Right or wrong, this is what they are doing. I have an excellent credit rack up and my insurance just went down $50.00 per year so it works both ways.
The only rationale insurance companies run your credit report is to determine what pay plan would be best based on your credit ranking. If you have a low FICO score after the insurance company will ask you to pay the premium in full. If you enjoy a good FICO score they will grant a monthly payment plan as well as the discharge in full option. Low score have a higher providence of not fulfilling their contract. Insurance companies cannot base your rates on credit history. It has nil to do with your ability to drive, and IT'S ILLEGAL.
With that said, I don't know what state you live contained by, but in California you can go through insurance agencies. They don't run your credit report, and you can achieve a monthly payment plan. However, states may vary so look around for your best likelihood. Source(s): Insurance Agent in California
The reasoning behind this(and the insurance companies have the numbers/charts to prove it)is that relatives with poor credit have a better potential for making a claim, or for making a fraudulent claim to get cash because they own financial problems.
This does not mean that you will, but unfortunately other dishonest relations have ruined it for the rest of us honest people and cost the insurance industry hundreds of millions of dollars a year.
Any company that asks for your social surety number is running a credit check.
I believe that California is the only State that does not allow companies to use credit as a rating factor.
Related Questions:
Are within any companies that don't do this?
Answers:
There probably are but most insurance companies now underpinning part of the rating on your credit score because they own found that a lower credit rating will be a higher risk for them, Right or wrong, this is what they are doing. I have an excellent credit rack up and my insurance just went down $50.00 per year so it works both ways.
The only rationale insurance companies run your credit report is to determine what pay plan would be best based on your credit ranking. If you have a low FICO score after the insurance company will ask you to pay the premium in full. If you enjoy a good FICO score they will grant a monthly payment plan as well as the discharge in full option. Low score have a higher providence of not fulfilling their contract. Insurance companies cannot base your rates on credit history. It has nil to do with your ability to drive, and IT'S ILLEGAL.
With that said, I don't know what state you live contained by, but in California you can go through insurance agencies. They don't run your credit report, and you can achieve a monthly payment plan. However, states may vary so look around for your best likelihood. Source(s): Insurance Agent in California
The reasoning behind this(and the insurance companies have the numbers/charts to prove it)is that relatives with poor credit have a better potential for making a claim, or for making a fraudulent claim to get cash because they own financial problems.
This does not mean that you will, but unfortunately other dishonest relations have ruined it for the rest of us honest people and cost the insurance industry hundreds of millions of dollars a year.
Any company that asks for your social surety number is running a credit check.
I believe that California is the only State that does not allow companies to use credit as a rating factor.
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