State Farm Didn't Incrase My Rates!!!

[chloe0724]

I just got my new policy information in the mail yesterday and they didn't increase anything!! I was very worried about this because they had stopped auto debiting my payments. I did get a bill for the full 6 months instead of monthly like I had been previiously. I am so happy!!!!!!!

[Flamingo]

Your state probably does not allow credit profiling. If they do allow it, since you just recently filed your insurance company may not have had your BK filing information and they could rise before your next renewal. Call your State Dept. of Insurance and see if your state allows credit profiling.

[chloe0724]

Flaming, they are definitly aware becasue we have a loan through them.

I hope it's because of our long realtionship and no accidents

[magyar123]

What reason did they give you for stopping the monthly auto deductions and sending you a full bill for six months?

[Flamingo]

Flaming, they are definitly aware becasue we have a loan through them.

I hope it's because of our long realtionship and no accidents

That could be and is probably it but know that if they pull your credit reports for any renewal and your state allows credit profiling, any insurance agency registered to provide insurance in your state can credit profile you and raise your rates. Some states have stopped that practice and do not allow it. If your rates rise in the future and your state allows credit profiling, your BK probably would be the cause of the rise. Our state eliminated credit profiling this past January and the advice was to those out there with bad credit or BK on their records to watch for any rise in rates and if they suspect the rise was due to their credit, to contact the Insurance Commissioner's office. Many states are banning the practice....be alert to that and I am glad your rates didn't go up and hope they stay down for you. It's so hard dealing with insurance rates and BK....Stay with them; if you go to a different carrier, you can bet the rates will be higher.

[chloe0724]

They said it's standard practice whenever you have a BK.

[WoodSprite]

That could be and is probably it but know that if they pull your credit reports for any renewal and your state allows credit profiling, any insurance agency registered to provide insurance in your state can credit profile you and raise your rates. Some states have stopped that practice and do not allow it. If your rates rise in the future and your state allows credit profiling, your BK probably would be the cause of the rise. Our state eliminated credit profiling this past January and the advice was to those out there with bad credit or BK on their records to watch for any rise in rates and if they suspect the rise was due to their credit, to contact the Insurance Commissioner's office. Many states are banning the practice....be alert to that and I am glad your rates didn't go up and hope they stay down for you. It's so hard dealing with insurance rates and BK....Stay with them; if you go to a different carrier, you can bet the rates will be higher.

This is great to know, Flamingo - thanks. I'm having trouble finding anything about "credit profiling" in relation to auto insurance, though...is there another term for it? I'll keep digging for a list.

[magyar123]

This is great to know, Flamingo - thanks. I'm having trouble finding anything about "credit profiling" in relation to auto insurance, though...is there another term for it? I'll keep digging for a list.

There is nothing officially on the books about credit profiling. It just happens in states which allow insurers to access your credit report and determine your premiums. You might have a perfect driving record, no tickets, no accidents, but if you have a bad credit history they can charge you more. These insurance companies claim that statistically people with bad credit have more accidents, claims, etc. Which is pure BS.
It's the same profiling BS like cops use in pulling over minorities in lily white neighborhoods, and/or airport security officials taking a "closer look" at folks of middle eastern descent.

[WoodSprite]

There is nothing officially on the books about credit profiling. It just happens in states which allow insurers to access your credit report and determine your premiums. You might have a perfect driving record, no tickets, no accidents, but if you have a bad credit history they can charge you more. These insurance companies claim that statistically people with bad credit have more accidents, claims, etc. Which is pure BS.
It's the same profiling BS like cops use in pulling over minorities in lily white neighborhoods, and/or airport security officials taking a "closer look" at folks of middle eastern descent.

Thanks, magyar. I get that, but if some states have made it illegal, there must be something written about what you're NOT allowed to do, right? I'm just trying to find out whether or not NY has outlawed it.

[magyar123]

Call up the NY State insurance commissioner's office.

[Flamingo]

This is great to know, Flamingo - thanks. I'm having trouble finding anything about "credit profiling" in relation to auto insurance, though...is there another term for it? I'll keep digging for a list.

Call your State Insurance Commissioner's office on Monday and ask for information relating to credit profiling by insurance companies for insurance purposes in your state. You'll have all you need to know, including whether or not your state allows the practice.

[Stilltheone]

They said it's standard practice whenever you have a BK.

We have been with State Farm for forever. My husband even has a 20+ year discount with them.(had life insurance taken out on him when he was 4)

Nothing has changed with us and State Farm. We still have automatic payments deducted every month from our checking account and they haven't said "boo" to us.

In fact, we got our "6 month renewal" notice for both vehicles in the mail the other day....and they both went down! We only pay $108/mo for an '03 Escalade, '98 Camaro and homeowners insurance.

Good luck to you!

[WhatMoney]

I think the common term used is insurance "credit scoring" - many google hits with that one.

Here's a Consumer Reports article that includes a mention of the few states that have some kind of law restricting credit scoring:

http://editorial.autos.msn.com/artic...umentid=435604

[Flamingo]

I think the common term used is insurance "credit scoring" - many google hits with that one.

Here's a Consumer Reports article that includes a mention of the few states that have some kind of law restricting credit scoring:

http://editorial.autos.msn.com/artic...umentid=435604

You got it - it was referred to as credit profiling in articles here in our state when it was eliminated this past January. Same thing, just different term. It just profiles those having bad credit or in BK as being in a class that would have more accidents or report more claims than someone who has good credit. If your state allows this practice, it's time to contact your representatives and take action to get it removed.

We have had our insurance company since 1984. The only times our rates rose were when we added on varoius newer cars or added on one or more of our 4 children. Our rates also have not risen due to the BK we filed in 2002 due to our long term association with them and our good driving record; however, if prior to this time we switched companies or they dropped us for any reason, and we applied to another company, credit scoring/profiling would have gotten us. That is why it is always best to try to stay with your same company during a BK if at all possible if you have a good record with them and not switch to try to get lower rates. However, they can just pull your credit reports prior to renewal and review your record and raise your rates if credit scoring/profiling is allowed in your state and your BK is now sitting on your credit reports and was not there during the previous renewal period.

[momof5]

I have state farm and I am in NY. They have raised my rates 2 times in the past month. (received 2 different bills with 2 different amounts showing updated rate). $208 for 6 months and now its $281! Quite a jump.

They claim it wasnt do to credit profiling but that its 'just an increase' due to various reasons that all customers got.
My Dad has State Farm and his rate is the same as it was a year ago so I know that is not true.



I have been with them for 20 years! 1 claim in all those years!

I should also add that the updated bill came about 2 weeks AFTER my discharge. I had already received a bill. The 2nd one said to disregard any previous bills.