Auto insurance and credit scoring

[factoryrat]

What a bunch of crap..... My credit worthiness has no more to do with my driving ability than does the fact that I own a cat or a dog. If people with bad credit are high risk drivers, wouldn't that reflect on their driving records? Wouldn't that then negate the need to base rates from a persons credit report?

[Meddle]

But it does affect your insurability. Some people in financial trouble might be more likely to burn a car or arrange to have it stolen or crash it into a tree or river to have the insurance company pay off the loan.

[gibran]

this is so wrong...people are going to wake up to this scam....credit scores are hurting the middle-class and poor...creating a permanent subclass based on a score that is quick to punish and a long time to eliminate...wake up this is what is killing America's recovery...how can a person obtain a loan after going through medical emergencies or loss of a job that is reasonable.... you have a bad patch and it will follow you everywhere... Walmart/Arvest would write up management employees if there spouses botched a check..until people complained loud enough...it is becoming more frequent in hiring...enough is enough...

I understand that some people in financial trouble get despirate..but the majority want to build their way out of bad credit...and those shouldn't be punished for years....it just perpetuates this cycle...but we are powerless against rampant greed in the finanace worlds...

[factoryrat]

But it does affect your insurability. Some people in financial trouble might be more likely to burn a car or arrange to have it stolen or crash it into a tree or river to have the insurance company pay off the loan.

Like you say "Some people in financial trouble might....", but I'm sure that the vast majority would not resort to a criminal act.
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[Detroitej72]

This is just another way to steal a buck from the working class stiffs, many of whom now are out of work and, no doubt, probably have bruised credit scores. Your rates should be based on your driving record, the number of claims you have made, and nothing more.

However, if greedy insurance companies want to make more money, I think they should charge double rates to the corrupt CEOs who run companies into the ground. Then, follow them up with politicians who are caught lying. Those two groups should be able to make it so that the rest of us can have our rates cut in half.

[Jimaz]

From Wikipedia's credit score article

Lenders also use credit scores to determine which customers are likely to bring in the most revenue.

It looks like drivers who cautiously avoid providing any revenue to that usurious leech-like credit "industry" suddenly now have become risky drivers.

Those arrogant bastards need to learn that some people neither need nor want dirty money from those loan sharks.

I'm considering canceling a discretionary insurance policy over this.

[Corn.Bot]

This is just another way to steal a buck from the working class stiffs, many of whom now are out of work and, no doubt, probably have bruised credit scores. Your rates should be based on your driving record, the number of claims you have made, and nothing more.

However, if greedy insurance companies want to make more money, I think they should charge double rates to the corrupt CEOs who run companies into the ground. Then, follow them up with politicians who are caught lying. Those two groups should be able to make it so that the rest of us can have our rates cut in half.

You absolutely hit the nail right square on the toe.