Car Insurance Checking Credit Reports?

[fslady]

Just got my renewal and it went up

I've had AAA for about 9 years, filed BK 1/07 and it renewed at a small reduction a year ago. Today I got my next 6 months notice and it looks to have almost doubled - no claims, on time payments, nothing to call attention except the credit report. I'm calling the agent tomorrow but if the premiums have close to doubled due to the BK only, I think I'll look at GEICO since they sound like they might be more reasonable. I kind of expected an increase a year ago but not 18 months into the BK. Yuck!

[Cali]

I haven't checked to see if my state allows credit profiling or not, but I filed in June and my insurance renewed for August. And I BK 2 cards with the company.

[chloe0724]

I don't think I recieved the notice because they pulled my credit. I am filing alone, but my husband and I have a loan for our vehicle through them, which has never been late and is not being included in my plan, but we still had to send them notice of my BK.

It's so crazy!!

[southernbelle]

I have State Farm and my insurance went up because my annual renewal for my home insurance was due the month after I filed. I now pay about $30 dollars more each month which stinks. At first I didn't know why my notes increased until I call the mortgage co. and they explained it to me.

Maybe I'm just stupid, but I don't understand what credit has to do with insurance! If you don't pay, they drop you anyway so why pull credit reports? Also, I guess it doesn't matter that in over 11 years, I've never filed a claim or been late with payments on my house, car or life insurance.

[twuoo]

Unfortunately, credit scores allow companies to judge us like covers on books. Nothing about our past histories, wheter we were good payeres, no accidents, reason for bk...none of it matters.

If your score is trashed, it haunts you. Period.

I know my score was yucky before I officially filed bk. But I did shop around for insurance just before I started to get delinquent on my bills.

Somehow, the insurance company said my preimum was based on a score of 751. I have no idea how they came up with that because I'm pretty sure I was in the higher 600's maybe.

At any rate, I jumped ship of my old ins company and came aboard AIG. It was a jump that saved me $600/year over my last insurance premium! That's serious savings.

I recently tried to do another ins comparison. If I tried to change now, the lowest quotes I get is still about $50 more per month than what I'm pay now, about $140 on 2 cars..one is a 2009 I just bought last month.

So I'm really pleased with AIG. They did bump my premiums up. I've been with them a year now. However, they said it was due to the state changing policies. I didn't go out of my way to direct their attention to my bk as the declarations page still states they based my rate off of 751 score. I'm glad they don't update... :P

[BKParalegal]

Actually, Allstate was one of the first to implement a credit check on new customers and the reason why is, and I don't know if they did the study or it was an independent study, but statistically people with bad credit filed more claims on their policies than people with good credit. This mainly pertain to the lack of maintenance done on their home and vehicles contributed to more incidents of damages. For example, someone that could afford to maintain the trimming of their trees is less likely to have one hit their house in a bad storm compared to a tree that is overgrown and rubbing against the house.

Good Luck

[twuoo]

If you folks have had any accidents and/or tickets, try to take an online safety course. I believe they cost about $30, but it can reduce your premiums.

[CindyLou]

I have had State Farm for 17 years and lived in LA, TX, and CA and they have never checked my credit for anything.