I understand the point the insurance industry is trying to get consumers to understand.
The issue at hand is:
1. Inaccuracies in credit reporting bureau infomation and lack of accountability for that inaccurate accountability.
2. Insurance is another consumer product, and in some cases, mine as an example, the insurer caused a negative crdit report through their lack of ability to perform the functions that they are paid for. This in itself should prohibit any insurer from being able to pull a credit history on anybody.
By charging a person more based on their credit history which may include the number and type of accounts, delinquencies or the number of times a loan or credit card was applied for, has no bearing on the individuals past claim history or past insurance payment history.
As an example, someone who has been insured with the same insurer for 15 years. Never had a claim,or any claim made was legitimate, never late on a payment. The Insurer has all the information they need about the insured claims and payment history. As well, an individual seeking insurance with a new carrier is asked these questions regarding previous carriers and claims. The insurer also has access to the past claims and payment history of an individual via the other carriers.
If an individual with no past claims or insurance premium payment delinquencies applies for a home loan, auto loan and credit card. This individual is now subject to a higher premium than before based on their credit history activity as opposed to the claims and insurance payment history.
Ideally, a a consumer service, an isurer, if legitimate, would base premiums on the claims and premium paymnet history of the insured as opposed to the theft method they are presently using.
The credit reporting agencies and issues around errors, identity theft and otherwise false or inaccurate information should not be used to determine somebody premium.
In your response, you indicate, \”If an individual with no past claims or insurance premium payment delinquencies applies for a home loan, auto loan and credit card. This individual is now subject to a higher premium…\”
This is wrong – a certain amount of healthy activity will increase your score, not depress it. A person who purchases a car, home or gets a credit card generally will see an increase in their score. I have checked my record on all three of the major scoring services, and I see inquiries from companies that I have no relationship with (guess Capital One is trying to find out what they want to offer me) but my reports also indicates NO deliquencies, NO forclosures, etc. My credit score is very good, and it is all because I have managed my credit and lived within my means and paid all bills when due.
I have more credit cards than I need and if I were to max them all out it would easily exceed my annual income, but I don\’t.
I don\’t mean to brag about my scores, but the point is that activity does not equate to lower scores, actually activity can elevate the score,.
Yes, mistakes can happen, but when you are dealing with such large numbers of people, the percentage of errors is probably quite low. As for my \”impeccable\” record – shows me living in three different towns right now (my dead father\’s two homes and my one home). Also, shows that I am working for a hospital in Saratoga, NY (have been in the town once).
Still, I have most of the things you mention and my insurance score is excellent. I live on my credit cards, very few cash transactions. Car payment, but no home mortgage (paid it off) and never late on any of my credit card payments (and, shame on me, I pay off credit cards in full each month).
Good dialogue,
Now using your obviously impecible credit history as the example I am citing and one that I have fallen pray to.
Somebody fat fingers a delinquency, or negative statement into your credit history, or your insurer fails to provide proof of insurance to an auto lender, etc. the credit bureau, the lender, or whoever was invovlde does not provide you with an indication that your history has been updated to show a delinquency that is false. you were never late, had nothing to do with whomever fat finger the information, innacurately reported the delinquency, etc.
Now you carrier hits the 3 year mark to pull your credit score for renewal, ooops, your credit history is percieved at lacking by the insurance industry, and you get your new policy statement claiming that you now owe an additional $500.00 on your premium due to that credit history. Forget the fact that the history had nothing to do with accuracy or wether you were actually late or delinquent.
Now have have the priveledge of fighting for the correction with the carrier and the reporting agencies. In the meantime, you will pay the additional $500.00 increase regardless.
The way the increase is justified from the carrier in your policy statement regarding the increase is by, Number of accounts open, type of accounts open, delinquencies, revolving accounts.
We also do quite well and our scores and payment history are flawless, or at atleast they were until somebody made a mastake that we had to clean up and pay for until resolved. By the way, try getting your money back from the carrier even it it was a mistake and you have made corrections with the reporting bureaus and proven that fact to the carrier.
Just food for thought, beware, we thought we were untouchable as well. Welcome to cooperate america, where the politician can be bought and cooperate america is buying them up.
P.S.
Your credit score from a lenders perspective and history are not what the insurance industry is looking at.
The amount of activity, number and types of accounts, etc is what they are looking at. So if you have 20 open accounts paid and current, never behind, Zero balance never used, etc. It is a negative with the insurance scoring method.
We know, we have just come through it and are still dealing with it.
Hope this helps.
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I understand the point the insurance industry is trying to get consumers to understand.
The issue at hand is:
1. Inaccuracies in credit reporting bureau infomation and lack of accountability for that inaccurate accountability.
2. Insurance is another consumer product, and in some cases, mine as an example, the insurer caused a negative crdit report through their lack of ability to perform the functions that they are paid for. This in itself should prohibit any insurer from being able to pull a credit history on anybody.
By charging a person more based on their credit history which may include the number and type of accounts, delinquencies or the number of times a loan or credit card was applied for, has no bearing on the individuals past claim history or past insurance payment history.
As an example, someone who has been insured with the same insurer for 15 years. Never had a claim,or any claim made was legitimate, never late on a payment. The Insurer has all the information they need about the insured claims and payment history. As well, an individual seeking insurance with a new carrier is asked these questions regarding previous carriers and claims. The insurer also has access to the past claims and payment history of an individual via the other carriers.
If an individual with no past claims or insurance premium payment delinquencies applies for a home loan, auto loan and credit card. This individual is now subject to a higher premium than before based on their credit history activity as opposed to the claims and insurance payment history.
Ideally, a a consumer service, an isurer, if legitimate, would base premiums on the claims and premium paymnet history of the insured as opposed to the theft method they are presently using.
The credit reporting agencies and issues around errors, identity theft and otherwise false or inaccurate information should not be used to determine somebody premium.
In your response, you indicate, \”If an individual with no past claims or insurance premium payment delinquencies applies for a home loan, auto loan and credit card. This individual is now subject to a higher premium…\”
This is wrong – a certain amount of healthy activity will increase your score, not depress it. A person who purchases a car, home or gets a credit card generally will see an increase in their score. I have checked my record on all three of the major scoring services, and I see inquiries from companies that I have no relationship with (guess Capital One is trying to find out what they want to offer me) but my reports also indicates NO deliquencies, NO forclosures, etc. My credit score is very good, and it is all because I have managed my credit and lived within my means and paid all bills when due.
I have more credit cards than I need and if I were to max them all out it would easily exceed my annual income, but I don\’t.
I don\’t mean to brag about my scores, but the point is that activity does not equate to lower scores, actually activity can elevate the score,.
Two things –
Yes, mistakes can happen, but when you are dealing with such large numbers of people, the percentage of errors is probably quite low. As for my \”impeccable\” record – shows me living in three different towns right now (my dead father\’s two homes and my one home). Also, shows that I am working for a hospital in Saratoga, NY (have been in the town once).
Still, I have most of the things you mention and my insurance score is excellent. I live on my credit cards, very few cash transactions. Car payment, but no home mortgage (paid it off) and never late on any of my credit card payments (and, shame on me, I pay off credit cards in full each month).
Good dialogue,
Now using your obviously impecible credit history as the example I am citing and one that I have fallen pray to.
Somebody fat fingers a delinquency, or negative statement into your credit history, or your insurer fails to provide proof of insurance to an auto lender, etc. the credit bureau, the lender, or whoever was invovlde does not provide you with an indication that your history has been updated to show a delinquency that is false. you were never late, had nothing to do with whomever fat finger the information, innacurately reported the delinquency, etc.
Now you carrier hits the 3 year mark to pull your credit score for renewal, ooops, your credit history is percieved at lacking by the insurance industry, and you get your new policy statement claiming that you now owe an additional $500.00 on your premium due to that credit history. Forget the fact that the history had nothing to do with accuracy or wether you were actually late or delinquent.
Now have have the priveledge of fighting for the correction with the carrier and the reporting agencies. In the meantime, you will pay the additional $500.00 increase regardless.
The way the increase is justified from the carrier in your policy statement regarding the increase is by, Number of accounts open, type of accounts open, delinquencies, revolving accounts.
We also do quite well and our scores and payment history are flawless, or at atleast they were until somebody made a mastake that we had to clean up and pay for until resolved. By the way, try getting your money back from the carrier even it it was a mistake and you have made corrections with the reporting bureaus and proven that fact to the carrier.
Just food for thought, beware, we thought we were untouchable as well. Welcome to cooperate america, where the politician can be bought and cooperate america is buying them up.
Have a great one.
P.S.
Your credit score from a lenders perspective and history are not what the insurance industry is looking at.
The amount of activity, number and types of accounts, etc is what they are looking at. So if you have 20 open accounts paid and current, never behind, Zero balance never used, etc. It is a negative with the insurance scoring method.
We know, we have just come through it and are still dealing with it.
Hope this helps.