Car insurance checking credit

[adviceplease]

I guess I am naive but I always though the car insurance companies look at the driving history and if you are current with the company you have now to determine your rate. I contacted Geico to check on a lower rate because I felt that I am paying to much with my current company. We are never late with our insurance because they are quick to cancel if you are They sent me an email that said:



Federal Fair Credit Reporting Act Disclosure Notice

Thank you for contacting GEICO for a rate quote.

The price we are quoting you is based in part on information provided to us by the consumer reporting agency listed below.

We are sending you this notice, as required by the Fair Credit Reporting Act, because you received a higher price based on your credit information.

The consumer reporting agency provided the following description of the credit factors that had the most influence on the price we quoted you:


-Proportion of revolving balances to revolving credit limits is too high, or there are no revolving credit accounts (-)

-Insufficient length of credit history (-)

-Delinquency date too recent (or date unknown) (-)


Please note that the consumer reporting agency did not participate in our adverse decision. They are unable to provide you with specific reasons for our decision.

You have the right to obtain a free copy of your credit report from the consumer reporting agency, whose address is listed below, if your request is made within 60 days of receiving this notice. You also have the right to dispute the accuracy or completeness of any information in the report by contacting the consumer reporting agency at the address below. If we receive notice that inaccurate or missing information in your credit report has been corrected, we will re-rate your policy.

We have bad credit but really good driving records so I am a bit irritated. We did find one that is lower and decided to change. I asked the person at the new company if they checked my score and she said yes and the amount is based on my score. So what happens when my insurance has to be renewed every 6 months and the BK is on there, can they raise my rates again?

[justbroke]

This depends on what State you live in. Many of the States allow automobile insurers to use credit as a determining factor on your RATE. For years, Government Employess Insurance Co. (GEICO) was one of the last companies to join the "insurance credit scoring" model. For years GEICO used only a report from CLUE (Comprehensive Loss Underwriting Exchange) on your accidents, claims and infractions.

Get use to this. My insurance score used to be over 850 (I think it was 875 or something). The score doesn't care if you work at McDonald's part-time... or make $200K a year and never file a claim.

I don't like it, but they use it to calculate risk.

[adviceplease]

I live in Michigan. I thought it was crappy because we have been with our old company for 10 years with no accidents or anything. The only reason we are leaving is because things keep going up for no reason. The person I talked to works with 10 companies and she said that the company has become out of control with what they charge. I still am receiving a better rate despite the bad credit somewhere else but what a joke that our past good driving record doesn't mean anything.

[debtmonster]

I've been with Geico since 1996 and now I think I am stuck with them. I guess they check credit for new customers. My rates have been lower than a lot of people I know. I tried getting quotes from 5 or 6 insurance companies in the past and most all of them are 2 to 5x what I am paying for Geico right now.

Now that I've pulled the trigger on the bankruptcy, I probably won't be able to get a decent rate on auto insurance for years to come. I'll have to be grandfathered in to the current policy I have. Even if I lose both cars, I will have to keep paying the policy as if I still have the car in my possession.

[Flamingo]

The key to all this is whether or not the state in which you live allows insurance credit profiling. If it does not and your rates rise either due to bad credit or filing BK and you know for a fact that is why the rates did rise and not due to any claims or accidents, contact your DOI (Department of Insurance) in your state. If your state allows the practice, there is nothing you can do cause if you switch companies or your present carrier does a credit check, your rates can skyrocket.

[pookieny]

I've been with Geico since 1996 and now I think I am stuck with them. I guess they check credit for new customers. My rates have been lower than a lot of people I know. I tried getting quotes from 5 or 6 insurance companies in the past and most all of them are 2 to 5x what I am paying for Geico right now.

Now that I've pulled the trigger on the bankruptcy, I probably won't be able to get a decent rate on auto insurance for years to come. I'll have to be grandfathered in to the current policy I have. Even if I lose both cars, I will have to keep paying the policy as if I still have the car in my possession.

How can you do that if you turn in the plate?

[pookieny]

The reason your rates go up after BK, is insurance companies think that people who file are more likely to make claims either bogus or legitimate.

That is why I never bug them for anything except a definite accident. They have locksmith coverage and other things but I never take advantage of them.

[adviceplease]

I switched to citizens auto insurance 2 days ago, they were $100 a month lower than Geico and they pulled my credit but did not care, maybe you can look into them?

I've been with Geico since 1996 and now I think I am stuck with them. I guess they check credit for new customers. My rates have been lower than a lot of people I know. I tried getting quotes from 5 or 6 insurance companies in the past and most all of them are 2 to 5x what I am paying for Geico right now.

Now that I've pulled the trigger on the bankruptcy, I probably won't be able to get a decent rate on auto insurance for years to come. I'll have to be grandfathered in to the current policy I have. Even if I lose both cars, I will have to keep paying the policy as if I still have the car in my possession.