Another typical example of the good suffering for the actions of the bad. Good people fight to get and maintain good credit and the fiscally irresponsable don’t suffer any consequences. Its not right.
I realize there is a slight correlation between poor credit and claims. However, I do not think that should exclude someone from preferred rates when the rest of the account is clean.
There are many reasons (divorce, death in the family, catastrophic illness etc) that can cause poor credit scores.
Companies are lumping everyone into one big pot. As if everyone with bad credit are bad risks.
Credit scoring should only be used if the client is borderline for acceptability and their credit score throws it specifically one way or the other.
What does your credit have to do with insurance. Iam sorry this law is wrong if i dont pay my bills on time that has noting to do with my driving and my homeowners inurance. This law makes it hard on people that just dont have money to pay things. If i dont pay a bill i guess iam a bad driver or i have burned my house down. This law is for the rich again what about people that just dont have alot of money.
The point Julie is missing is that the insurance industry HAS TO lump people into pools or classes. You can’t rate someone totally on their own merits because the company won’t know if it is a good or bad risk – that is determined after one, two, three losses. There has to be some amount of prediction based on certain factors because the quality of the insured is unknown until a loss actually happens.
It has nothing to do with the amount of money you have. That isn’t even factored in. I will say that if you can’t meet your financial obligations, though, you probably aren’t going to put a new roof, new siding, etc. on your house when needed, and you probably aren’t putting new tires, brakes, etc. on your car when needed. All directly related to the chance you have a loss or a GREATER amount of loss than you otherwise would.
The principle of insurance is to have many pay for a few. Probably around 20% of drivers have a claim in any given year. As one of the other posters said, very little information actually tells someone whether you are “Good” or “bad” in terms of risk of loss.
The insurance industry cannot look at each individual and say “I’m going to charge this much.” You have to look at big chunks of data and see where the person fits in terms of what the company already knows. Each person has to fit into a class. Based on what that class has cost over a long period of time, a premium charge can be developed.
I don’t know if you, I, or the next person will have an accident at any given time, but based on what class the person fits into, I can make a pretty good guess at when and how much it will cost…
Well iam tired of the Insurace compaines running everything. My homeowners insurance went up from 500.00 to 857.00 a year. And my car inusrance went up also to and my credit score is not bad. But my thing is if you have bad credit what does that have to do with the way you drive?? if i get a ticket i have to pay higher rates so this is double jeapordy. The same with home owners insurance.
Education might be what is needed at some point. Insurance is mandatory, but no one understands how it works.
I’m not sure what you mean by “running everything”. You realize an insurance company is a business, just like anything else, just like a restaurant, grocery store, etc. Any business is going to do what it can to try and make a profit – it isn’t an evil thing. You wouldn’t go to work if you didn’t get paid, right?
Regulators, especially in Michigan, have a long history of damaging the insurance marketplace.
Do you realize Michigan is the only state to have UNLIMITED medical benefits on auto policies? We have the “Cadillac” of auto policies. Yet, when we had a surplus in the state fund that covers all of the huge catastrophic claims, lawmakers decided to give the money back. Do you remember the $200 check per vehicle you got back about 6 years ago? Well, at that time, your auto insurance included a $14 charge to fund this state fund. Guess what? – 6 years later you are paying $120 (approximately) every 6 months because the fund is in a deficit. Not a very wise decision to give that money back, right?
Law Makers in Lansing aren’t necessarily looking out for YOUR best interests.
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Another typical example of the good suffering for the actions of the bad. Good people fight to get and maintain good credit and the fiscally irresponsable don’t suffer any consequences. Its not right.
I realize there is a slight correlation between poor credit and claims. However, I do not think that should exclude someone from preferred rates when the rest of the account is clean.
There are many reasons (divorce, death in the family, catastrophic illness etc) that can cause poor credit scores.
Companies are lumping everyone into one big pot. As if everyone with bad credit are bad risks.
Credit scoring should only be used if the client is borderline for acceptability and their credit score throws it specifically one way or the other.
Not everyone with two speeding tickets in three years is a bad driver either. But it’s one piece of criteria the industry has to go on.
The reality is that credit scoring seems to be more indicative of loss history than a driving record.
What does your credit have to do with insurance. Iam sorry this law is wrong if i dont pay my bills on time that has noting to do with my driving and my homeowners inurance. This law makes it hard on people that just dont have money to pay things. If i dont pay a bill i guess iam a bad driver or i have burned my house down. This law is for the rich again what about people that just dont have alot of money.
The point Julie is missing is that the insurance industry HAS TO lump people into pools or classes. You can’t rate someone totally on their own merits because the company won’t know if it is a good or bad risk – that is determined after one, two, three losses. There has to be some amount of prediction based on certain factors because the quality of the insured is unknown until a loss actually happens.
It has nothing to do with the amount of money you have. That isn’t even factored in. I will say that if you can’t meet your financial obligations, though, you probably aren’t going to put a new roof, new siding, etc. on your house when needed, and you probably aren’t putting new tires, brakes, etc. on your car when needed. All directly related to the chance you have a loss or a GREATER amount of loss than you otherwise would.
Hey Eric so you think if your credit is not good your car insurance should go up???
The principle of insurance is to have many pay for a few. Probably around 20% of drivers have a claim in any given year. As one of the other posters said, very little information actually tells someone whether you are “Good” or “bad” in terms of risk of loss.
The insurance industry cannot look at each individual and say “I’m going to charge this much.” You have to look at big chunks of data and see where the person fits in terms of what the company already knows. Each person has to fit into a class. Based on what that class has cost over a long period of time, a premium charge can be developed.
I don’t know if you, I, or the next person will have an accident at any given time, but based on what class the person fits into, I can make a pretty good guess at when and how much it will cost…
Well iam tired of the Insurace compaines running everything. My homeowners insurance went up from 500.00 to 857.00 a year. And my car inusrance went up also to and my credit score is not bad. But my thing is if you have bad credit what does that have to do with the way you drive?? if i get a ticket i have to pay higher rates so this is double jeapordy. The same with home owners insurance.
Education might be what is needed at some point. Insurance is mandatory, but no one understands how it works.
I’m not sure what you mean by “running everything”. You realize an insurance company is a business, just like anything else, just like a restaurant, grocery store, etc. Any business is going to do what it can to try and make a profit – it isn’t an evil thing. You wouldn’t go to work if you didn’t get paid, right?
Regulators, especially in Michigan, have a long history of damaging the insurance marketplace.
Do you realize Michigan is the only state to have UNLIMITED medical benefits on auto policies? We have the “Cadillac” of auto policies. Yet, when we had a surplus in the state fund that covers all of the huge catastrophic claims, lawmakers decided to give the money back. Do you remember the $200 check per vehicle you got back about 6 years ago? Well, at that time, your auto insurance included a $14 charge to fund this state fund. Guess what? – 6 years later you are paying $120 (approximately) every 6 months because the fund is in a deficit. Not a very wise decision to give that money back, right?
Law Makers in Lansing aren’t necessarily looking out for YOUR best interests.