thats the Larry the cable guy effect..
“I believe sometimes you have to wreck the truck to get the insurance money to make the payment on the truck” - larry
the argument is you are more likely to make a claim if you have bad credit than if you have good credit. I have no clue how they came up with this, but that is what they say.
I can see their rational. If your have good credit that means you are generally managing your life well, not an alcohol, drug addict, losing gambler, jobless drifter, etc. And those types have a much higher statistical probability of getting their vehicle damaged or stolen.