question on auto insurance after BK

[jribe]

Does anyone know if your auto insurance rates will go up after filing for BK? I've always carried our cars on full coverage, never missed any payments, no accidents or tickets. I just hope they don't raise rates because you filed for BK. I'm currently with 21st Century if that helps

Thanks for any comments!

[Flamingo]

If insurance credit profiling is allowed by your State, you can bet your rates can rise with a BK on your credit reports. Contact your State Department of Insurance to see if your state allows the practice. If it does not and your rates go up and you suspect it is due to your BK, contact your State Department of Insurance and it will be investigated.

[magyar123]

If insurance credit profiling is allowed by your State, you can bet your rates can rise with a BK on your credit reports. Contact your State Department of Insurance to see if your state allows the practice. If it does not and your rates go up and you suspect it is due to your BK, contact your State Department of Insurance and it will be investigated.

This of course also depends if you want to change insurance carriers. If you stick with the one that you have been with for a long time the chances are that that company will NOT spy into your credit history.

[jennordhavn]

I don't believe CA allows that. However, if you want to make monthly payments, sometimes they will check your credit and make you pay the first six month premium up front before they will allow monthly payments.

[Flamingo]

This of course also depends if you want to change insurance carriers. If you stick with the one that you have been with for a long time the chances are that that company will NOT spy into your credit history.

That is usually correct but in this economy and the way businesses have been changing their practices for now and in the future, I wouldn't bank on it...

[magyar123]

I don't believe CA allows that. However, if you want to make monthly payments, sometimes they will check your credit and make you pay the first six month premium up front before they will allow monthly payments.

You're right - California does not allow this type of profiling - yet. But Arnold won't be running for Governor in 2010 , and things might change once he returns to Hollywood making his muscleman movies
I hope he'll stick with making movies like "Twins" and "Kindergarten Cop".

[Keebler]

Does anyone know if your auto insurance rates will go up after filing for BK? I've always carried our cars on full coverage, never missed any payments, no accidents or tickets. I just hope they don't raise rates because you filed for BK. I'm currently with 21st Century if that helps

Thanks for any comments!

Allstate jacked up my rates 50% months BEFORE we filed!

Presumably it was due to our credit scores and delinquent accounts. I had been with them for years and they always offered me lower rates than any other company I could find. Supposedly I was in the best rate group that new customers couldn't even be included in. More than five years ago I even had a $30,000 claim due to a stolen vehicle that didn't make my rates go up at all -- and now this.

When I shopped around I found a couple companies wouldn't give me a quote and most of the others were all close to the same price. I switched to the best company with rates similar to most of the others. I ended up getting TEN TIMES the coverage I had for less than I was paying Allstate BEFORE they added the 50% increase.

[TEW]

Mine did not change in PA I just moved to KY and my insurance went down. I did see if hit on my credit report the day i got the insurance. no problem at all making monthly payments they asked what day of the month do i want it taken out.

[StartingOver08]

I'm with State Farm and have been with them for 18 years. My rates have not changed one penny since the BK filing 9/30/2008.

Of course, I have not missed any payments or been late in 18 years for home, auto, and life insurance so that may be a factor.

[JRScott]

I didn't change car insurance companies, they did not change my rates. I think it went down a dollar or two each month actually.

[subking]

I have SF and no changes so far.

[okiemom2008]

Allstate jacked up my rates 50% months BEFORE we filed!

Presumably it was due to our credit scores and delinquent accounts. I had been with them for years and they always offered me lower rates than any other company I could find. Supposedly I was in the best rate group that new customers couldn't even be included in. More than five years ago I even had a $30,000 claim due to a stolen vehicle that didn't make my rates go up at all -- and now this.

When I shopped around I found a couple companies wouldn't give me a quote and most of the others were all close to the same price. I switched to the best company with rates similar to most of the others. I ended up getting TEN TIMES the coverage I had for less than I was paying Allstate BEFORE they added the 50% increase.

I have allstate so I am worried now. What company did you go with? The onyl vehicle we have is going back in the bk and it is with Allstate. So I am probably going to have to start fresh anyway on the used vehicle we buy.

[okiebk09]

we have state farm and called today to put one policy on hold seeing how we turned in our truck this week to the bank. that is a differetn story in itself. anyway we told him we were filing bk and he did not say anything about rates going up. we have always paid and have been with him for 12 years. plan to stay with him also. great agent.

[Grider]

Insurance Co that rate you on credit scores and not driving skills or past claims can GO take a HIKE,,, find another co who rates your insurability for the right reasons. I never have taken a policy with anyone one who wants my credit. I think thats just wrong, and I have actually worked for ins brokers,,, its all about ripping you off!
and I have written to my congress about companies doing that.

[Flamingo]

Insurance Co that rate you on credit scores and not driving skills or past claims can GO take a HIKE,,, find another co who rates your insurability for the right reasons. I never have taken a policy with anyone one who wants my credit. I think thats just wrong, and I have actually worked for ins brokers,,, its all about ripping you off!
and I have written to my congress about companies doing that.

It is not your insurance companies, it is the STATE that allows the practice to take place. If your state allows insurance credit profiling, the insurance companies can utilize the practice. Our state does not allow it anymore (been over a year) but our rates did not rise very much after we filed but we have had our insurance company (Liberty Mutual) since 1985 with hardly any claims.

Write to your state representatives if your state allows the practice. Also, as I stated in a previous post, if you believe your rates went up due to you filing BK or due to your credit report, and you reside in a state that does not allow insurance credit profiling, contact your Department of Insurance and have them investigate.