Michigan Commissioner Says Proposed Insurance Scoring Ban Would Reduce Rates

June 15, 2004

  • June 15, 2004 at 8:50 am
    Baxter says:
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    I have to agree that credit scoring has no business in insurance rate setting, nor in any other aspect of free trade other than what it was intended for-obtaining credit. Those of us who shy away from credit and keep OUT of debt are being penalized for no apparent reason other than we are fiscally responsible and debt free. Insurance rates have been extremely high for far too long. Insurance companies rank right up there with the drug companies. Do you really think they care about your safety and well being? They are making HUGE profits at our expense and that is all they care about! Credit scoring is just another ruse to hike prices on the poor-which I’m sure is a majority as opposed to a minority. The least able to pay – pay the most. Now tell me, where is the sense in that, other than profit.

  • June 15, 2004 at 12:34 pm
    Compman says:
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    Typical liberal BS. Why should the people who file less claims subsidize those who do! As that lib from Detroit said “I want relief and I don’t care where it comes from.” Boy, I am glad she is an elected official. Really clear thinking on her part. I am glad I don’t live in Detroit. Being in California, I only have to put up with the likes of Nancy Pelosi, Barbara Bouncer and Lynne “I never met a entitlement program or tax hike I didn’t like” Woolsey.

  • June 16, 2004 at 10:11 am
    Bobarski says:
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    Many with poor credit are their due to corporate downsizing, catastrphic financial events, divorce,etc. This has no bearing on their driving other than effecting their ability & desire to purchase a gas guzzling SUV or other large truck that does more than its fair share of damage to other parties in accidents. I suggest a surcharge on these bigger vehicles and bigger surcharges on those drivers with accidents & convictions. Accident/violation surcharges have served the industry for the ages in predicting propensity for loss. Let vehicle damagability, cost & utility drive cost. I would also suggest that if the desire to raise funds is paramount surcharge vehicles that get the lowest gas mileage. Obviously, those who purshase them have the ability to pay.

  • June 16, 2004 at 1:41 am
    Compman says:
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    Oh my god, I can’t believe it. Both Baxter and Bobarski have been fed such a load of crap from the media’s liberal bias that you actually believe what you are saying. Once again, this is a not a “credit score”, it is an “insurance score” based on many factors including credit. Not that I condone the use of the scoring system myself, as I do believe it has many flaws that need to be fixed before it really could be used indicriminately, but I do believe that the people who use the insurance the most and are higher risk, should have to shoulder the burden of paying higher costs. While the article was about Homeowner’s insurance, the reply was about Auto insurance. The rating factors for auto already go beyond MVR records. They do take into account the type of vehicle driven and the cost to repair them in case of an accident. These are called ISO symbols. The higher the symbol, the higher the physical damage premium. As far as I know most companies use these now. As far as putting a insurance surcharge on gas guzzlers, that is the most wacked out liberal idea I ever heard. Why do you all think just becuase someone is successful and has a moderate income, that they should be penalized and made to give to the less fortunate who for some valid reasons and other for not valid reasons, are not as well off. I don’t mind paying my fair share of taxes, but not at the expense of someone who is capable of working but chooses not to becuase they are too lazy or unwilling to do most work.

  • June 16, 2004 at 2:47 am
    John says:
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    Credit scoring is a discriminatory tool used by the insurance industry to redline in econimically depressed and minority areas. To many studies lend creedence to this fact. All studies which the industry touts are either industry controlled, initiated or funded, in short, bogus and not to be believed.

    Insurance credit scoring is not the answer. Tillinghast, Towers-Perrin had a report last July in which they stated that the industry should abandon credit scoring, return to standard underwriting and do a better job of data mining in their own books.

    Freddie Mac study shows how minorities tend to have much lower credit scores than whites.

    Maryland credit study comparing minority to non-minority zip codes, again, a desparate impact.

    There are many reasons the insurance industry desires to use credit. Few if any are moral and ethical.



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