jwilliams22mn
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Absolutely! The whole credit score system needs to be re-invented. For example, when I got my mortgage on my house I had my credit pulled several times by several lenders so i could get the best rate, of course. Now, I have all these inquiries that will be on my credit for 2 years. Plus, there are mistakes that take forever to fix. Insurance companies cannot base what kind of driver you are with what kind of credit you have. I swear it is a scam. Also, wtf is up with them checking you credit when you apply for a job? That is unethical! Prime example, my husband had not the greatest credit when he started his job out of college, he got a job with a large company that he is moving up very fast in and the company loves him! So, if they had based his hiring off of his credit they wouldn't have hired him. When in fact, he is the best person for the job! I hate this system, I wish I could figure out a way to abolish it for any other use besides loans or credit! Wrong, wrong, wrong!!!!! |
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Xicanista
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No I don't feel that it is discrimination, there is a direct correlation with irresponsible people making irresponsible driving choices, which is why the insurance industry legitimately reviews credit information.
AND FYI: not all reports that insurance companies make directly effect your credit score or are based solely on your credit score. |
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Mike
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I hear in prior comments that its not discrimnation because the credit score is from your choices. I disagree partially because what about cases of identity thefts, etc. Also just because studies show people with lower credit scores are more of a risk is crazy. I could do a study and find something else in common for bad drivers. For example, People who eat cheeseburgers are higher risk. Its all crazy. |
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Johnface
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in regards to affecting my rate, yeah, its not right. just cause i had financial trouble in the past doesnt mean i'm a bad driver. |
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Mom of 2 great boys
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Very much so, but this is what it has come down to.
I guess they feel if you can't pay bills on time or you don't pay them at all then you are liability to them.
I can see their side of it too. |
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Travis Bickle
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Insurance companies use statistics to determine risk. If statistics were to show that people with good credit are more accident prone, then you would get a discount for having bad credit. I don't think that is the case, though.
Chances are, poor credit indicates a higher risk. It certainly would increase their risk of not getting paid. |
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Ezekiel
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Nope. Lower credit rating generally means higher risk of default (and losing money for the non-payment of the customer's monthly premiums). It also tends to go hand-in-hand with less-responsible behavior, which tends to be a greater risk that the customer will file costly claims against the policy. Insurance companies hire teams of math whizzes to calculate these risks on an on-going basis.
These are general correlations, of course, not hard and fast rules. But it's not fair to make the other customers pay the higher costs associated with these financial risks. The people who bring the higher risks should bear their own higher burden. (It also gives them the incentive to work to lower their own risks, which benefits everybody.) |
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sure yep
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You've obviously never been responsible for running a business, or you would know better.
You've never known a family whose primary bread-winner died suddenly, uninsured, leaving a wife and 3 or 4 young kids without any way to avoid bankruptcy and lives of poverty.
And you've never considered what would happen if you bought a new car that got totaled before you'd finished paying it off. Without comprehensive insurance, you'd be both ride-less and penniless (and date-less, too) for years to come. |
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colin
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yes its really rediculous |
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DP_Hawgs
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No, they have to set price to cover the risk of non-payment
if a person pays 1st month they must be covered for 60 days in most states 90 in some even if non payment. (on Auto)
Some bed eggs make it tough for others! |
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misskate12001
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Hardly. I think it's smart of businesses to protect themselves and their clients from people who don't pay their bills. |
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farid s
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wow thats a very good question to ask...but it all depends on who it is you know. |
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Aubreigh aka The Female T-Pain
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Here are some frequently asked questions about insurance. |
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shaylaroshena
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yes forsure it's discrimination. They are going to get money no matter what- why look at credit. |
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TedEx
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Not at all. Historically, people with better credit take better careof things. Maintain your credit rating, then this should not be a problem. |
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xBananax
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Discrimination? No, because your credit score is something you have earned based on your own personal choices, good or bad. Its not something your born with or can't be changed.
Unfair? Absolutely. |
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Rogue
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No, I do not feel that it is discriminatory.
It (credit info) is just another TOOL in determining what is one characteristic of the individual applying for insurance. |
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donald e
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no its not, they the insurance company is a lender also, they are loaning you a policy with a promise to pay in full, they want to be sure you are going to pay your premiums, and they want to see how you handle your financial obligations, the charts show those that handle their financials properly are less likely to have hugh or multiple claims therefore they are entitled to a reduced rate, whereas those who dont have more claims and reap what they sow a higher rate. its all in the numbers and past history, so play the game accordingly, its the same for interest rates, you dont have to be well off to handle your obligations apprpriately, just smart enough to realize the value of good credit and act accordingly |
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da8man2004
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i think insurance and taxes are nothing but an american way to rip off ppl and that they can get away with it it sux!!!!! the tax dollars of mine and yours going to the crackheads standing on the street corner all day getting ppl addicted and strung out then they go home and have sex like rabbits and then we end up paying for them 2 ??? and they never work a day in their lives ???????wtf is wrong with way the government these days>? they dont care cause you do know that poo runs down hill....!!! |
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b.johne k
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they want to make sure and get your money on time so they can continue to be the richest in the usa sad huh ?but to keep motorists insured has become a major problem thats why we have so many hit and run coz most shouldn't be here in the first place |
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Reo
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Absolutely! Insurance companies should be abolished. They are nothing but crooks and rip offs. |
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