Insurance profiling....

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magyar1045
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Insurance profiling....

Postby magyar1045 » Sat May 31, 2008 11:20 am

As you may all know some states allow car insurance companies to base their premiums on a person's credit history/score.
This BS profiling, just as bad as cops pulling over African Americans when they drive around in lily white neighborhoods, and airport security folks "paying extra attention/searching folks of middle eastern descent.


1bootcamp
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Postby 1bootcamp » Sat May 31, 2008 4:16 pm

I can see some validity in it. If you hit someone and you have to pay that person's deductible or some other liability you have that's associated with your insurance. They want to know how likely you will be to pay. But that I don't think should be significant enough as a reason to use it. Do you know how many states do it? I thought most didn't use credit scoring but I could be wrong.

magyar1045
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Postby magyar1045 » Sat May 31, 2008 5:17 pm

I don't know which states allow it, but here in California it is NOT.

velveeta-shells
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Postby velveeta-shells » Sun Jun 01, 2008 12:21 am

What I hate most about car insurance is when they profile based on your zip code. I get it but come on guys it shouldn't effect the price that much.

magyar1045
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Postby magyar1045 » Sun Jun 01, 2008 1:34 pm

velveeta-shells wrote:What I hate most about car insurance is when they profile based on your zip code. I get it but come on guys it shouldn't effect the price that much.


Zip code profiling is allowed. State governments agree with insurers that there are more accidents/losses within certain zip codes, primarily low income/racially mixed areas.
But insurers can not do this profiling/rates robbery if you live/garage your car in a low risk zip code but travel/commute into the downtown area of a major city.

Roni
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Postby Roni » Fri Jun 06, 2008 6:31 pm

I don't see anything wrong with insurance co's using credit records. If you're not responsible enough to pay your bills, why should they think you'll be a responsible driver? I think some of you want to complain about it because it's happening to you, but you know it's the truth. There's nothing wrong with this at all and if anything they should make credit an even more important factor. No different than them using your driving record same thing

magyar1045
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Postby magyar1045 » Sat Jun 07, 2008 8:47 am

Whoa - credit has absolutely nothing to do with driving ability. You can be a responsible driver for years and years, no tickets, no accidents. So why should you be punished/sentenced to higher insurance premiums because you may be a slouch when it comes to credit?

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fffresh
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Postby fffresh » Sat Jun 07, 2008 1:38 pm

I'm staying out of this one but I can tell you that I have great credit but I'm a reckless driver. Not the safest guy on the road here.

MemberSince99
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Postby MemberSince99 » Mon Oct 28, 2013 2:46 pm

This is kind of a philsophical debate here but anyway....yeah it's BS I mean where do you draw the line? If you find that studies show that blonds have more accidents do you put a surcharge on people with blond hair? It should be based on your driving record. I could see the vehicle, and where it is being part of it too. Credit? I don't see what that has to do with it really.

I SUSPECT the reason they suddenly told us that studies showed that people with poor credit are more likely to file claims is that when the economy crashed we had more people with bad credit and thus a larger pool of people they could jack the rate up on and make more profits which is what the game is all about for them. At that time (2008) I had poor credit so when they started doing that, they jacked my rate WAY up as a result. However when it improved to mid 700s, they did NOT lower my premium and just kept finding reasons to raise it, funny how that works.

I can't of course prove my theory, I can only point to what happened with me, but as my dad used to say, knowing something and proving it are two different things....personaly I can also say that in the last 11 years I've put on over 250,000 miles alone. I have not had an accident, ticket or claim since 1988, that's 25 years. During much of that time my credit was trashed though it's great now. My driving is exactly the same and the number of claims and tickets stayed the same regardless. Is suspect that any connection they point to isn't based on a direct correlation but just a desire to boost profits. If they did a study that found that people with great credit had more claims, and most people had great credit, they'd use that to justify increasing premiums too.



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