Which auto insurance companies DON'T use a credit score when deciding rates?
Just about every company will use credit score if allowed. The bestter question would be: "Does my State allow credit scoring? " Maryland for instance does allow insurance credit scoring.Htm.
According to the article referenced, both Progressive and Allstate do not require credit checks when determining your auto insurance premiums. In addition, many online insurance quote sites will give you a quote without even looking at your credit score. Org/learning-center/no-credit-check-auto-insurance.
Thank you for the link, although I am skeptical of their sources and motivation since they advertise insurance quotes right from their site, and also because the claim Allstate and Progressive do not credit check. Allstate does in fact check credit scores, at least in the state of TN, as does Progressive. Offering one a quote online or in person does not in any way guarantee that the rate won't change after a credit check also - it's usually in the fine print of the quote.
They can decide when the policy is underwritten that you're a risk and change their mind. Thank you for the information about WHY companies are using credit scores to set policy rates, but I'm quite familiar with that reason. That those with low credit scores are more likely of fraud is debatable...and almost smacks of saying poor people are more likely to commit crimes.
Does a suspicion and/or stereotype make it ok to discriminate against an entire economic class? I suspect the real word insurance companies would use if they could get away with it is 'claims', since those with poor credit scores and/or lower income individuals are more likely to USE the service they've been mandated to pay for than the wealthy who can pay out of pocket for an accident-related loss. Should credit score affect your health insurance?
Your right to vote? Your place in line at the grocery? It's a bit out of hand.
There's my 2 cents anyway, for what it's worth. Thank you for your information. I hold out hope some agency will take an obvious stand against insurance scoring and broadcast it so that the 25%+ Americans who have bad credit will switch immediately, taking the other 20% who have medium credit with them.
Frae 4 months ago .
It should be illegal for an insurance company to do so and if I find one that doesn't they got my business.
I am a 62 yr old woman who has been driving since I was 18. I have never had an accident or made a claim on any insurance policy. I recently purchased a car after some years of not owning my own and because I always pay cash and do not agree with giving my social security number out to anyone, I have been quoted solely on my credit rating.My personal feelings on having credit differs quite a bit from the norm.
I do not have credit cards any form of "credit payment". If I have not paid a bill it is because I DO NOT OWE IT, so what is reported on my credit report are either bills I do not owe or wrongfully reported information. These insurance companies don't even ask me for my drivers license number!
Something is VERY wrong with this. We have forgotten that OUR social security numbers were meant only for our retirement benefits and not for credit purposes. Credit bureaus are not governemnt agencies....they are just "money making collection companies" THEY CHARGE FOR THEIR SERVICE and apparently are not held to any standard to do so correctly!
My personal interaction with them has been one of total amazement. They report incorrect information and then expect you to correct their mistakes. I must be in the wrong business!
Where else can a company do so much wrong, get paid for doing it wrong and tell you to correct the problem? My insurance quotes have been absurd, over $2,400 per year for a car I paid $1,000 for. I am disgusted, angry and confused at how all of this is even possible in these hard times.
God Bless America.....and God help us! .
You should know that the insurance company could raise your premiums, move your account to a subsidiary company, and even cancel your insurance altogether. The majority of insurance companies consider your credit score along with your driving record to determine risk. Some companies use credit scores to deny renewal coverage even if you never filed a claim and even if you have paid all your premiums on time.
If you do not want to be denied coverage, find a company that sells no credit check auto insurance. Why Auto Insurance Companies Check CreditThe assumption is that there is a relationship between financial stability and risk. The insurance industry keeps statistics on credit ratings and insurance claims and, based on these statistics, they have found in general that the lower the insurance credit score, the more likely you are to file claims, exaggerate the claims you file, and perhaps even commit insurance fraud.
This does not mean that you personally would do these things, but that you happen to fall into an unfavorable category because of your relatively low credit score. According to the Insurance Information Institute, "Insurance scores don’t predict the actual experience of one individual. They predict the average claim behavior of a group of people with essentially the same credit history."
A good score is typically above 700 and a poor score is below 600. While on average people who have poor credit scores tend to file more claims, there are always exceptions. Within that group, there may be individuals who have stellar driving records and have never filed a claim.
Finding No Credit Check Car InsuranceYou should be able to find a company that sells no credit check auto insurance, even though many insurance companies want to know your risk level before they sell or renew your auto insurance policy. They want objective and accurate information when they issue policies. They also want to be able to predict claims, manage risk and offer more coverage to more consumers at a fairer cost.
However, some insurance companies will offer no credit check auto insurance anyway. If you are concerned about how your credit rating will affect your coverage, you probably should find one of those companies. You can use our service to get no credit check car insurance quotes.
Your state insurance department may also be able to provide the information you need. Checking Your Credit ReportIf the insurance company refuses to cover you because of your credit history, the Fair Credit Reporting Act allows you to obtain a free copy of your credit report. According to the Federal Trade Commission (FTC), "your credit report contains information about where you live, how you pay your bills, whether you have ever been sued, arrested or filed for bankruptcy.
Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. The federal Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of information in the files of the nation’s consumer reporting companies." Handling Errors and Identity TheftYou may have been unemployed for a few months and fallen behind on some of your bills.
Even worse, you may have been the victim of identity theft and someone else is responsible for your adverse credit report. The FTC is a good resource for information on protecting yourself from identity theft. However, if you find yourself in this unfortunate situation, you should obtain your credit report and check it over for accuracy.
You may find that some of the information on your credit report is wrong. If you find errors on your credit report, there are ways to get them corrected, however it may not be so quick and easy to remove the unfavorable information. For helpful information from the Federal Trade Commission on how to dispute credit report errors, click here.
You might want to look for no credit check auto insurance because correcting erroneous information on your credit report can sometimes be difficult and time-consuming. It might be less of a hassle to go ahead and get the no credit check car insurance than it would be to repair your credit right now. However, for a variety of reasons, it would be in your interest to deal with the credit reporting agencies sooner rather than later.
Additional Information on No Credit Check Auto InsuranceThe Insurance Information Institute recently published a study discussing details of why carriers associate credit score with auto insurance risk.
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