That is a silly response. The Supreme court is here to enforce our laws, not to enforce things the way you personally like it. Both individuals and corporations have rights. While I take stab at Safeco for their practices, this doesn’t mean I will force them to stop, they can do it as mush as they want and I can choose not to do business with them. The marketplace is king. By the way, if you think there is some law that these companies have violated, please specifically state what law that is and what jurisdiction it is on the books in.
it’s not the matter that the geico won…they stood up for their right to use credit as an u/w criteria…not all agents are paid by commission either…
but whether that person might file a larger claim because of the credit does not mean that they are actually bad drivers…if they can use that as a signal for a claim instead of driving to ensure that they are only paying on a proper claim…
some folks have low credit but are very good responsible folks when it comes to driving….we try alot in the industry to relate everything to being more responsible…you could have someone whom is a college professor whom has a bad habit of speeding, whereas we can get a kid working at a fast food joint and no violations of driving…why – so we can say a professor is a better driver or the kid?…remember insurance is based on risk, sometimes we associate risk differently…
think about the days of lloyds of london, it was about the risk or captains taking their ships around the world and trading goods…remember, tho, ships we also subject to pirates and even the whether…
i think credit, is not a very credible at determining a risk for driving, but it should be used only as a signal for a unreasonable amount of claim paid out or frequency of filing claims for more pay…as far as driving, i never heard a credit score – earning a driver license, nor have i heard DMV saying you had to have a score level to get a license…
I’ve been an agent for over 28 years. I have had 3 customers convicted of arson (burning their own house down), 2 customers convicted of having their car stolen, 2 convicted of insurance fraud staging accidents and lots of suspicious claims in which fraud was suspected. In each and every one of these it was the insured’s bad credit score which alerted claims investigators to take a closer look. These customers’ credit had deteriorated to the point that they might do something illegal to use their insurance policy to make some money. This is one of the key factors in why insurance companies use credit.
My customers with the best credit usually better maintain their property- homes, autos, boats, etc..
It was so much simplier to write insurance before credit scoring but, it works. Most of my customers pay lower rates thanks to credit scoring.
I do think that credit scoring can be allowed only with adequate disclosure to the customer.
KU
I think that credit scoring has merit and works in many cases. However, I also agree with other responders that some people with high incomes and high credit limits are not being properly scored. Many people are able to use large amounts of credit very responsibly but, most insurance scoring does not reflect this fact. Late payments should the area of most concern when scoring credit – not ratios.
KU
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That is a silly response. The Supreme court is here to enforce our laws, not to enforce things the way you personally like it. Both individuals and corporations have rights. While I take stab at Safeco for their practices, this doesn’t mean I will force them to stop, they can do it as mush as they want and I can choose not to do business with them. The marketplace is king. By the way, if you think there is some law that these companies have violated, please specifically state what law that is and what jurisdiction it is on the books in.
it’s not the matter that the geico won…they stood up for their right to use credit as an u/w criteria…not all agents are paid by commission either…
but whether that person might file a larger claim because of the credit does not mean that they are actually bad drivers…if they can use that as a signal for a claim instead of driving to ensure that they are only paying on a proper claim…
some folks have low credit but are very good responsible folks when it comes to driving….we try alot in the industry to relate everything to being more responsible…you could have someone whom is a college professor whom has a bad habit of speeding, whereas we can get a kid working at a fast food joint and no violations of driving…why – so we can say a professor is a better driver or the kid?…remember insurance is based on risk, sometimes we associate risk differently…
think about the days of lloyds of london, it was about the risk or captains taking their ships around the world and trading goods…remember, tho, ships we also subject to pirates and even the whether…
i think credit, is not a very credible at determining a risk for driving, but it should be used only as a signal for a unreasonable amount of claim paid out or frequency of filing claims for more pay…as far as driving, i never heard a credit score – earning a driver license, nor have i heard DMV saying you had to have a score level to get a license…
I’ve been an agent for over 28 years. I have had 3 customers convicted of arson (burning their own house down), 2 customers convicted of having their car stolen, 2 convicted of insurance fraud staging accidents and lots of suspicious claims in which fraud was suspected. In each and every one of these it was the insured’s bad credit score which alerted claims investigators to take a closer look. These customers’ credit had deteriorated to the point that they might do something illegal to use their insurance policy to make some money. This is one of the key factors in why insurance companies use credit.
My customers with the best credit usually better maintain their property- homes, autos, boats, etc..
It was so much simplier to write insurance before credit scoring but, it works. Most of my customers pay lower rates thanks to credit scoring.
I do think that credit scoring can be allowed only with adequate disclosure to the customer.
KU
I think that credit scoring has merit and works in many cases. However, I also agree with other responders that some people with high incomes and high credit limits are not being properly scored. Many people are able to use large amounts of credit very responsibly but, most insurance scoring does not reflect this fact. Late payments should the area of most concern when scoring credit – not ratios.
KU