Good grief, credit scores tell creditors how reliable a person is to repay a debt.
Credit scores are used when buying houses, cars, obtaining a credit card or line of credit.
The reason I bring this up today is I got the following email from my insurance company today:
On March 22, 2021, the Washington State Insurance Commissioner issued an emergency rule. The rule states that as of June 20, 2021, no personal insurance company will be allowed to use a credit-based insurance score to determine personal insurance rates, premiums or eligibility for private passenger automobile coverage, renters coverage and homeowners coverage issued in the state of Washington. As a result of removing credit-based insurance scores from determining insurance rates, some members may experience a change in their premiums. For members with multiple USAA insurance products, this rule may have multiple impacts.I just checked my insurance renewal rate and it's going up.
I have no insurance claims, good credit, but now apparently I'm being penalized for being a responsible customer?
Perhaps I should be happy they haven't asked my skin color or this white guy would really get socked with an increase.
No you're not being penalized, you're happily subsidizing the insurance claims of people with bad credit and lifestyles. They will continue to live recklessly and spend money they don't have to enjoy life. That should make you happy that other people are enjoying life at your expense. Gives you a good felling, don't it?
They’ll still run the credit score and background check. MY bud runs a used car dealership close by and no dealership can afford to approve a lease based on “nothing”. Wa state has to figure out how “exactly” in court loser A who has $2000 unpaid parking tickets didn’t get a 2019 Jaguar based on a 400 credit score.
Is there a connection between credit scores and reckless driving, or other insurance claims?
I don’t know enough about the insurance business as to how they set premiums. I guess I’m surprised the credit score has been a big factor , at least in some states.
They should not be using credit scores to set rates!!! I don’t care where you live, who you are, color, race, whatever, this hurts all of us.
Just great - now I get to pay for everyone who doesn’t give a $hit.
I don’t think credit should be used for insurance. If you don’t pay, it gets canceled. It’s not like a home mortgage.
People do not have low credit scores because they are deadbeats. They can have low credit scores if the opt to not have a credit card, they don’t borrow money, don’t own a house, paid cash for their car, etc. So, for those bemoning this Washington law, should those people get charged a higher rate for their insurance? No.
Kreidler is a fascist from way back. He forced pharmacies to carry the morning-after pill because they are “agents of the state.” Well, if that’s true, give them state benefits. And if any business needs a license to engage in business, ALL businesses are “agents of the state.”
If they can’t use your credit score for insurance rates, they will decide they can’t use it for anything. You can see where this is going. At the very least, responsible borrowers will have to subsidize irresponsible ones.
I got the same one. Not sure how this will affect my policies. I had great credit, lost my job, filed bankruptcy, got another great job and rebuilt my credit and my rates all stay about the same.
Insurance is pay as you go. If you dont pay the premium you are not covered. Simple equation. Its high time they start closing the door on unnecessary taking of person information, which when you read the fine print allows insurance companies to share that information with whoever they want.
Credit checks should be for loan processing and security clearance investigations only and for nothing else.
I can think of a few things that may broadly corelate with heightened auto insurance claims risk that they’re legally forbidden to consider. I think this should be one of them.
Another example: I had lifelong A+ credit and a lifelong perfect safety record. I got divorced. My family, my life, my finances got frivolously burned down. Like the friggin Hindenburg. My credit went to pot for the first time in my life, but I still had a perfect driving safety record. Never had an accident or a claim. Zero connection between those two factors. On credit score alone they jacked my rates to a level comparable to what they’d assess a proven unsafe operator. Big expense right when I’d been bled dry in a divorce and tossed on the scrap heap. No relief from shopping other insurance companies. Wherever they’re allowed to do this, they all do it.
Everyone is legally required to purchase these companies’ product. If the citizens of a state decide to give them reasonable limits on how they can treat their captive customer base, I have no problem with that.
Let’s see insurance companies pull out of the state.... that’ll do wonders for rates.
This was a predictable result, all insurance will go up regardless of your responsibilities and good conduct, etc.. Yes in effect the good risks are going to now subsidize the the poor risks.
Much like the FDIC in rates for insurance for banks, everyone pays the same regardless of the risk for a particular bank.
So those in WASHINGTON State just bend over and use the KY Jelly. Although a suit needs to go to Federal Court.
This was always wrong. They did not used to do this until the modern way of doing things came into play.
My insurance company notified me today my rates will go up as a result.
Thanks, commiecrats.
MY father-in-law, who is in his nineties in age, was refused renewal of his Washington State-issued auto insurance BECAUSE HE DOES NOT HAVE ANY CREDIT CARDS OR DEBT, or so they said.
He never filed a claim and had always paid his premiums on time. He owns his house outright with no mortgage.
He did manage to get auto insurance with another company and he no longer drives but still owns his vehicle which must be insured to be registered.