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Login to post Forums » Off-topic discussion » Insurance Co. - Credit Report??

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April 1, 2009 8:31 p.m. Hal HalfDork

My wife's aunt decided to change her homeowners and car insurance to another company (had AIG). So I called my agent (aunt is nearly deaf) and set up an appointment. Agent came to her house, looked at the house and car and said she would call us later.

Next day agent calls with prices which are better than she was paying. So my wife take her aunt to the agents office and she signs and pays for the insurance.

One week later the aunt get a letter from the insurance company stating they were unable to get a credit report. They want her correct the info(name, address, etc) so they can run a credit report.

Since when did you need to get a credit report to get insurance? She already paid for the insurance. I've had the same agent for the last 30 years so I am not up on things currently.
April 1, 2009 8:35 p.m. Grtechguy UltraDork

one of my neighbors said something about that as well... I blew it off as her not knowing what she was talking about.

The less people checking my credit score the better. It actually hurts your credit to keep having it checked
April 1, 2009 8:41 p.m. Osterkraut HalfDork

It's true.

Apparently they adjust rates based on it, too (that I don't know about).
April 1, 2009 8:53 p.m. aussiesmg Dork

Insurers checking your credit do not affect you rating, loan applications/credit cards etc do affect your rating
April 1, 2009 9:46 p.m. pete240z Dork

I heard on talk radio once they adjust your rates based on your credit score or if you are sloppy with your finances, they assume that you are sloppy with your driving or homeowner part and will cost them more money, so rates are higher.

I don't know if that is really true. Beuhler?
April 2, 2009 5:05 a.m. foxtrapper SuperDork

Hal wrote:

Since when did you need to get a credit report to get insurance?.... I've had the same agent for the last 30 years so I am not up on things currently.

Oh, since the early 90's, if not the late 80's. They long ago discovered a direct correlation between credit scores and insurance costs. Been exploiting that ever since.

If it's really been 30 years since you've gone sniffing around, it's probably worth your while to go sniffing. Like you I'd been with the same agent for decades until a bit of a misunderstanding and some harsh words. Could have knocked me over with a feather when I found I'd been paying nearly triple for insurance for years.
April 2, 2009 5:25 a.m. ddavidv UltraDork

If you guys are shopping for insurance and call the Gecko, be sure to use promo code 135337. It may help to know someone like me. Or it may not.

Yes, credit scores are used these days. Bad credit does often go hand in hand with claims, as people who have lousy credit and owe everyone tend to make more fraudulent claims. Can't make the payments on that Escalade? Suddenly, it gets stolen and is found burned but with no signs of ignition tampering. Suspicious? Noooo...
April 2, 2009 7:27 a.m. DILYSI Dave UltimaDork

ddavidv wrote:

If you guys are shopping for insurance and call the Gecko, be sure to use promo code 135337. It may help to know someone like me. Or it may not.

Yes, credit scores are used these days. Bad credit does often go hand in hand with claims, as people who have lousy credit and owe everyone tend to make more fraudulent claims. Can't make the payments on that Escalade? Suddenly, it gets stolen and is found burned but with no signs of ignition tampering. Suspicious? Noooo...

Would this code be useful for existing customers?
April 2, 2009 7:31 a.m. 914Driver Dork

I called the Gecko to drop a car and add one. The girl was nice, while looking at the screen said "And thank you for being a Gecko customer since - OOOO! - 1973?"

Yes maam, why spoil a good run?
April 2, 2009 8:47 a.m. CrackMonkey Reader

Gecko didn't initially ask for a credit report, but at some point, they sent me a letter saying it could drop my rates. I told them to do it, and sure enough, the rates dropped a bit. Whatever saves me money.
April 2, 2009 10:22 a.m. Grtechguy UltraDork

ddavidv wrote:

If you guys are shopping for insurance and call the Gecko, be sure to use promo code 135337. <

what does this do?
April 2, 2009 11:24 a.m. Keith UberDork

When I moved to the US from Canada, my driving record (three tickets) followed me. But my credit score (excellent) did not no matter how much I tried. The companies simply weren't interested, they simply said "your SSN is only two weeks old, you are obviously prepared to commit major fraud and probably cause millions of dollars of property damage and get sued by McDonalds for drinking their coffee". Holy crap, did I pay for some hefty salaries in the insurance industry for a few years there.

I always go through a broker when buying insurance. That way, if there's a claim, I have someone on my side who's not being paid by the insurance company.
April 2, 2009 11:28 a.m. Hal HalfDork

I called the insurance agent about the letters this morning. After we had a good laugh, she said to throw the letters in the trash.

When Aunt Jane gets the policy I am going to check the ratings. If they give her a higher rate because they can't get a credit score I am going to have some fun.
April 2, 2009 11:44 a.m. Mental UberDork

Loyal State Farm guy for years, got in on my wife's policy when we got married and she has had no other insurance company. I paid absurdly low rates in OK on multiple vehicles tied in with our homeowner's, unquestionable customer service on 2 winsheild claims.

Move to CO, and got a fradulent claim on my credit report. My car insurance triples, which still wasn;t too bad, its just the principle of the matter. No one could tell me why. I get the blip corrected on my credit report and not only will they not refund my money, they will not lower my rate.

I still have my motorcycles with them, as USAA doesn't insure bikes, but they can bite me.
April 2, 2009 11:55 a.m. 93celicaGT2 Dork

Mental wrote:

Loyal State Farm guy for years, got in on my wife's policy when we got married and she has had no other insurance company. I paid absurdly low rates in OK on multiple vehicles tied in with our homeowner's, unquestionable customer service on 2 winsheild claims.

Move to CO, and got a fradulent claim on my credit report. My car insurance triples, which still wasn;t too bad, its just the principle of the matter. No one could tell me why. I get the blip corrected on my credit report and not only will they not refund my money, they will not lower my rate.

I still have my motorcycles with them, as USAA doesn't insure bikes, but they can bite me.

I'm in the middle of something like this with my gf's car insurance company.

She started out paying about $80 a month for her Taurus. I would call that normal for a young driver, first car, blah blah blah.

She got a notice saying that her rates were increasing, due to a "global rate increase." Okay, fine.... i can deal with that. Until i saw what they went up to. $147 a month. EXCUSE ME?!?! Now... keep in mind she had had no claims, no accidents, and no tickets in that time. But like the sheep that she can be, she just went ahead and quietly paid it without complaint. For a year. Then i found out about it.

So needless to say, i've been raising hell with these people at least twice a week for the last two months. To make it even worse, i find that they have spontaneously upped her coverage to full coverage, accounting for most of the rate increase. She never authorized that, and as far as i can see, what they've done is illegal.

I've figured out that based on the rates they have now quoted for insuring the Escort under her, they owe her a year of free insurance, and i WILL get it out of them.

Me? I pay $37 a month for my car insurance, no credit checks. I'm 23.
April 2, 2009 12:41 p.m. mad_machine UltraDork

I wish I paid 37 a month for car insurance. 2 cars.. a BMW and a Saab (one is slow, one is fast) on liability only, 2 points in the last 10 years... $155 a month here in the great state of NJ.

I am also a single male at 38
April 2, 2009 1:25 p.m. 93celicaGT2 Dork

That's only for one car at the moment. They said if i add the vert on when it's done i'll be looking at still under $60.

This is for state minimum. The cars aren't worth anything, so i haven't felt the need to up it. Yet.
April 2, 2009 8:36 p.m. bludroptop Dork

914Driver wrote:

I called the Gecko to drop a car and add one. The girl was nice, while looking at the screen said "And thank you for being a Gecko customer since - OOOO! - 1973?"

Yes maam, why spoil a good run?

I had almost the identical conversation with some young lady who works for the Gecko, except in my case she said:

"...thank you for being a GECKO customer since... oh my - since before I was born!"

FYI - if you are denied coverage, or offered less attractive terms because of your credit report, the insurer is required to send you an Adverse Action Notice. Google will give you the details.
April 3, 2009 7:08 a.m. ddavidv UltraDork

Grtechguy wrote:

ddavidv wrote:

If you guys are shopping for insurance and call the Gecko, be sure to use promo code 135337. <

what does this do?

It flags you as a GRMer. They've been running a 'call for quotes' promo since the fall. That little code gives me credit for someone calling and makes me look like a hero. I can't promise that it will give you a better rate since I don't work in sales, but it certainly doesn't hurt getting a referral from an employee.
April 3, 2009 9:26 a.m. Hal HalfDork

bludroptop wrote:

FYI - if you are denied coverage, or offered less attractive terms because of your credit report, the insurer is required to send you an Adverse Action Notice. Google will give you the details.

If that happens, then the fun begins. I will contact Ross McLaughlin the consumer reporter for Channel 7 in Washington, DC. I'm sure he would like this story:

XXX INSURANCE DENIES COVERAGE FOR ELDERLY DEAF WIDOW

Mrs Jane XXX contacted "7 On Your Side" because the XXX insurance company denied her coverage even though she had paid the local agent for the insurance. In checking with the insurance company we learned that the coverage was denied because the company was unable to get a credit report for Mrs. XXX.

In interviewing Mrs. XXX, who is nearly deaf, we learned that she has never borrowed any money or had a credit card in her entire life. In fact, she and her late husband did not buy a house until they had saved enough money to pay cash for it. Mrs. XXX said "I don't belive in credit. If you don't have the money to buy something then you don't need it."

With the current state of the economy I think this story would draw a lot of attention!!!
April 3, 2009 10:27 a.m. Johnboyjjb New Reader

I left Farmers when my wife and I got married. For a few months they were ok, we were still getting good student discounts. Then when they found out that she was under 21, like it wasn't on the paperwork for almost 2 years, they tripled my rates. She has no accidents and no tickets. Quite happy with progressive now.
April 3, 2009 5:23 p.m. ddavidv UltraDork

The world is not set up for those of us with low or 0 FICO scores. You just have to learn to work around it. The vast majority of people are in debt, so those of us who are not are weirdos.
April 3, 2009 9:06 p.m. Hal HalfDork

ddavidv wrote:

The world is not set up for those of us with low or 0 FICO scores. You just have to learn to work around it. The vast majority of people are in debt, so those of us who are not are weirdos.

I can relate to that. Because of Aunt Jane's hearng problems the wife and I get to go with her a lot. Last year her old stove (40" wide double oven purchased in 1950) finally gave up. So we went looking for a replacement. She wanted an identical stove so it took us most of a day going every where to find one. Inquired about price, etc. and it came to about $1500.

So we went back the next day and it went like this:

Me: She would like to order this stove. Clerk: That will be $1500. We have a special financing deal right now. Me: She will pay cash. Clerk: OK, I will need her credit card. Me. She is going to pay CASH Clerk: Ok, we have to wait for her check to clear. Me: Since you don't understand what cash means let talk to your manager.
April 26, 2009 5:29 p.m. internetautomart SuperDork

I know with esurance (my current company) the primary on the insurance has their credit checked.
I am not primary on my insurance because of my credit, and it makes a huge difference. though I am paying $500 per 6 months for 3 vehicles now (94&5 caravans 92 G20 car) liability on each

I was paying a bit over 6 for 4 vehicles
April 26, 2009 6:41 p.m. Datsun1500 HalfDork

internetautomart wrote:

though I am paying $500 per 6 months for 3 vehicles now (94&5 caravans 92 G20 car) liability on each

$500 for 6 months will seem real cheap if you ever put new drivers on the policy. My Son is $4200 a year, 16 years old, new driver, full coverage, etc.

It was $2500 just to add him as a driver on my policy, $3000 with just liability on a beater and the $4200 for full coverage on a MINI. We were shopping newer Audi A4's until we found out it would be $5500!

That is with all discounts included (no tickets for anyone, honor roll, etc.)

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