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        Daily Chat >> General Posts >> I hate insurance companies!
        
(Message started by: jimmers on Jan 26^th, 2008, 9:08am)

Title: I hate insurance companies!
Post by jimmers on Jan 26^th, 2008, 9:08am

I received a letter the other day from American Family that they are going to check everyones credit rating to see if they should charge more for homeowners policies for new and existing customers. WTF?!

Who the hell do these fuckers think they are, a bank?

Since when is it legal for someone to check your credit rating without your permission?

I have had a few nicks on my rating the last couple of years, and I am working very hard to get them cleaned up. I called my agent (Friend) and sure as hell, my Homeowners policy is going to go up $200 per year.

Every time someone checks you rating, doesn't that count against your rating? I believe it does.

I can't believe this. These bastards act as if they are borrowing me money or something. I have only had 2 small claims in the last 16 years, paid my insurance bills on time, and this is the thanks I get?

Doesn't this border on being illegal? >:(

Sorry for the rant.

Title: Re: I hate insurance companies!
Post by brewcrew on Jan 26^th, 2008, 9:16am

You may hate them, but they love you. You're a cash cow to them.

Check into Acuity, up near Sheboygan.

Title: Re: I hate insurance companies!
Post by Groov on Jan 26^th, 2008, 10:37am

Hey Jimmers:
I heard about the possibility that ALL insurance companies will be setting premiums with credit rating in mind. Guess it has come true.

I have no idea what difference it makes. The only thing I can think is that they want customers who pay them on time every time.

I'm never late, don't have traffic tickets and haven't caused an accident since I started driving in 1978, yet my credit score isn't 850...so I will have to pay them more...WTF !!!

I have been with State Farm auto for 15 years and pay them what they want on time. Why cant they simply look at that and charge me accordingly???

I'm going to have to assume that it is one of two things. Either their studies show that people with higher credit scores are a lower risk or it is just a way to raise the majority of rates and trying to quell customers complaints by claiming that is is somehow fair & equitable to all.

Does anyone here know if credit scores ACTUALLY affect the drivers risk potential????

If it's just an excuse to raise rates, I'd rather they just be honest and tell me to take the screwing and like it instead of trying to make it look like I asked for it.

SIGH....

Title: Re: I hate insurance companies!
Post by HeadhurtinMama on Jan 26^th, 2008, 11:02am

Ok, I will stick my neck out here, just don't chop my head off while it is there! I work at the Corporate office of a "major" insurance company. Studies have been shown that people with higher credit scores are indeed lower risks. This is part of an intiative to more accurately price the premium to the risk that is being taken by most auto and fire companies. I can also add on a personal note that I have been with my insurance company for 10 years, my credit is not the greatest and this has not affected my premiums, thankfully! If your premium jumped that much, it may be time to shop around.

Bridget
PS... I'm only in systems, not anywhere that determines premiums. :)

Title: Re: I hate insurance companies!
Post by Groov on Jan 26^th, 2008, 11:07am

Ah I should have asked you Bridget...duh !!!

Well, there you have it. It is legit.

BTW Bridget, you don't have to justify anything. You do your job, do it well and aren't guilty of anything more than any of us just cause you work for them.

Thanks for making sense of the question.

Cheers, Dave

Title: Re: I hate insurance companies!
Post by HeadhurtinMama on Jan 26^th, 2008, 11:15am

Yeah Dave, I know it's not like I did it, but sometimes working for an insurance company is like being a politician. People don't like insurance companies any better than they do politicians and they expect the employees to be able to answer all their questions. Insurance is a necessary evil. And here in central IL, people are really biased against people who work there.

And Jimmers, I don't think this counts against your credit, since you aren't applying for credit.

Title: Re: I hate insurance companies!
Post by Groov on Jan 26^th, 2008, 11:18am

I know Bridget, but if they do have something negative to say to you, I will reciprocate...just in my nature to bash ignorant people and stand up for my friends. ;;D

Title: Re: I hate insurance companies!
Post by jimmers on Jan 26^th, 2008, 11:26am

It still does not change the fact that they cannot legally check my credit rating without my permission.

That is the biggest gripe I have about this whole thing.

They are not a creditor, and are not loaning me money in any way, shape or form. They are nothing more than extortionists with a license!

My credit rating took a hit because of some past business dealings that went bad. I just don't see what the hell that has to do with my house burning down or getting hit by a tornado.

Title: Re: I hate insurance companies!
Post by Groov on Jan 26^th, 2008, 11:40am

I agree Jimmers. I think it is likely that when a new customer signs up for a policy, there will be something in the fine print giving them permission to check your credit score.

Title: Re: I hate insurance companies!
Post by brewcrew on Jan 26^th, 2008, 12:19pm

It's probably one of those deals where you don't have to give your consent and they don't have to renew your policy.

Just like me submitting to a pee-pee test at work. I have a choice, but so does the company.

Title: Re: I hate insurance companies!
Post by Mosaicwench on Jan 26^th, 2008, 12:41pm

on 01/26/08 at 11:02:34, HeadhurtinMama wrote:

Studies have been shown that people with higher credit scores are indeed lower risks. This is part of an intiative to more accurately price the premium to the risk that is being taken by most auto and fire companies.

Thanks HHmama - you posted what I was gonna say. The better your credit score, the lower the statistical risk. And since insurance companies make money from risk analysis, this is one way for them to project future risk. If you have a trampoline or a swimming pool, statistically you are a higher risk for filing homeowners insurance claims. If you drive a motorcycle or a Ferrarri, the same is true with car insurance.

If my cell phone company can check my credit rating before offering service, then insurance companies surely can do the same.

I guess we can just shop around and find companies that treat us better than others.

Title: Re: I hate insurance companies!
Post by Charlie on Jan 26^th, 2008, 9:36pm

Sure checking your credit is probably illegal....not that that means anything today. Sigh.....

Charlie-- who has no insurance anyway... >:(

Charlie

Title: Re: I hate insurance companies!
Post by Woobie on Jan 27^th, 2008, 6:54pm

I got that letter too - for car insurance. >:(

If you have a bad year (or two) and get blips on your credit, nowadays...
it's nearly IMPOSSIBLE to be able to afford to fix it...

it's way more expensive for "us" to live, than the rich.

woobs
:-*

Title: Re: I hate insurance companies!
Post by monty on Jan 27^th, 2008, 7:07pm

I believe that there are patterns in the way we use our phones that could help identify who is a greater risk and who is a lesser risk for car insurance companies.

People who have disturbed sleep and make/take calls at all hours probably are more likely to lose concentration and bump into something. Likewise, car insurance rates usually go down when a male turns 25, based on the observation that 25 year olds are more mature. But there are some 25 year olds that still have the brains of 22 year olds, and that might show up on something like a credit check or phone records.

This could be a win-win-win situation! People pay for the risk that they represent. Insurance companies have a better view of who they are insuring, and how risky that is. And the phone companies could create value-added products that would make them more profitable so they could lower rates.

Of course, this approach wouldn't be as accurate as a full DNA scan for every customer, with risk premiums or rewards for different genes, but it would probably be a lot cheaper!!

8)

Title: Re: I hate insurance companies!
Post by jimmers on Jan 27^th, 2008, 8:07pm

Whats next, Soilent Green? ::)

Jimmers