Ya so why does it? If it's set to auto pay anyways. I have about $20,000 in debt left and my credit score just went up (yes up) to 577. Reason being is my ex-wife. I had flawless credit until her. Anywho, obviously this is affecting my auto insurance rate. I have no accidents and no speeding tickets. I'm 23 years old and drive a 94 Ford Explorer. I just don't get why credit should be a concern for auto insurance. It's not like you are locked into a contract or anything. I have it set to auto pay so it comes out regardless. Auto insurance is already a ripoff as it is, let alone with a bad credit score causing it to be even higher. I understand the whole "it protects them" nonsense but they are already getting a lot of money from my paycheck every month for no reason at all. They should be happy with that, without penalizing me for having bad credit at the moment. this is more of a rant than anything. thanks for reading ;-)
It's a flawed system, but I think they judge your level of responsibility on how responsible you are with money. Obviously you've been responsible and your ex fucked you over, but they don't know that, and all they see is a guy who can't handle money so they assume you can't drive well either. Same reason kids with high GPA's in high school get lower insurance rates.
Hmm you've got a point dude. It's not fair. Not that it'll change anything, but have you tried meeting with an agent and trying to negotiate? Or call around and see if any companies will show some good ol' reasonableness (a word?)?
Debt/bad credit reflects on how much supposed stress a person is under. Stressed out drivers= more apt to get in accidents. What a bunch of BS! Any way an extra charge can be made=more proffit, is more like it. insurance has become the biggest legal scam in history.
I haven't met with an agent before. That's not a bad idea. I doubt it will do anything though. I'm sure the rate is just based on what credit bracket you fall into and it can't really be adjusted. I also get penalized on what town I live in. I live in a "ghetto" town 25 miles south of where I work because it's way cheaper. It's really not that ghetto but it is compared to where I work. My insurance went up quite a bit just by moving here. It's dumb that just because of the irresponsible people that live here, I am penalized for that too. Frankly, they base it on way too many factors. It should be based solely on your driving record. Who cares about my credit? Even if I was the one who caused my bad credit, how does that affect my driving? None. And why does the "ghettoness" of the town I live in affect me. Maybe their are more accidents but as a good driver, I should be able to avoid them anyways. I just think it's laughable that I pay more than some people I know that have several speeding tickets and accidents but they have good credit. Like I said, it should be solely based on driving records and that's it.
agreed, insurance has always been a scam. Wow the amount of money i could save without it... i suppose the stress is a good point but even so, it's a bad point. I'm stressed but, again, that does not affect my driving my any means.
If you're being charged extra for the town you live in you could try getting a PO box in a "safer" town and tell them you moved. Might as well do some lying to save some cash.
You're under 25 still, that's why you're getting fucked in the ass for insurance. Personally I love the fact that they use credit to lower my insurance rates. I've got great credit but have been a couple points away from losing my license several times, without factoring in that credit score my rates would be far too high. You should find a way to have your credit repaired or pick an insurance that doesn't use credit scores.
ya i know i'm under 25 still but comparing to people I know that are still under 25 but have had several tickets and accidents, they have a better rate than me because of credit. see I just find that completely wrong that you have cheaper rates because of your credit but you have a worse driving record. This isn't a knock on you at all as it's obviously working in your favor but the point of car insurance should be to keep people save. It just seems backwards to me that people with great credit but poor driving records get rewarded for that... I am in the process of repairing my credit. It just doesn't happen over night. What insurance company doesn't use credit though? I certainly don't know.
Credit is an indicator of reliability and priorities. If you're able to handle your money, be on time with payments and not accrue overwhelming debt you're statistically less likely to partake in risky behavior behind the wheel. Insurance companies realize that accidents do occur without negligence and people do receive minor tickets every now and then. They also know that just because you don't have tickets or accidents on your record you aren't necessarily a better driver, so they need another way to figure out your risk profile and credit works great. As for insurance companies that don't use them, go to websites that offer online quotes, if they ask for your social, they're pulling credit scores, if they don't they likely don't use them. However, if I remember correctly, the ones who don't use credit scores often end up being more expensive than the others.
Ding ding ding! This is the answer. Have you ever been cut off in tragic by a guy driving a beater, white smoke coming out the back, etc? Everything about that guy screams "I make many bad decisions...". The credit rating is a decent benchmark as a result. Using your turn signal and obeying traffic laws is common sense just as with paying you bills on time. Chainblade is an interesting case though, his credit issues are related to a knuckle headed spouse. But there again, the decision to marry her was his! j/k
Try Essurance, I know you see the ads all the time. I get the lowest rate with them surprisingly and I am just 24 with terrible credit (worse than yours Chainblade). I pay about $300 over six months, or $60~ a month. www.essurance.com Sounds like you just chose the wrong insurance, you could try an insurance brokerage. There are companies that will find the best insurance rate for you, but more so with a personal touch to your situation.
wow! i just worked my way up to 710. it took 3 months of planning but i finally got over 700 for once haha
that's who I am with...esurance. I have a 1994 Ford Explorer with comprehensive and a 1992 Honda Accord on liability and it costs $241 a month ($160 a month with both on liability). so far, esurance has been the cheapest, but it's still really high compared to other people I know that are my age with better credit but with tickets and accidents. I understand what you are saying, Juballharshaw, about statistics but I still believe its wrong to jack up auto insurance rates because of bad credit. What about people who had perfect credit but had a sudden medical condition and now are tens of thousands of dollars in debt? It isn't fair. I understand that your good credit is working in your favor and you like it but it's ridiculous to me that I have no tickets or accidents and I am treated worse than someone with good credit but lots of tickets and accidents. Isn't the tickets and accidents an indicator that they aren't the best driver?! Sure the occasional ticket and accident might happen but I'm a 23 year old male with nothing. In this day an age, that is usually unheard of. Yet the moron that drives like an idiot and causes problems is rewarded more than me because of credit. Sorry but it's bullshit. base it on driving record only should be the factor. I don't get the argument that because I don't have tickets or accidents, that isn't a good judge if I'm a good driver. Uh hello, lol, that is THE argument that I am able to obey traffic laws and not cause accidents and/or avoid accidents. And people don't get why once you are in debt, it's about impossible to get out. I'm trying my hardest and doing pretty darn well but when my insurance rates are insanely high and other things in life treat me like crap and jack up all my rates, it's impossible to try and pay stuff off.
I use truecredit.com it has all three and it's like 14 bucks a month TransUnion Experian Equifax 762 691 721those are my credit scroes from all three
I just have a 1970ish Suburban on liability. I am 24 so I don't think a year matters. I have a clean record as well. Oh and the town your in isnt as important as the distance you drive your car each day, that is probably why they increased it when you moved.
Yep, its a fairly sad truth that in that states you are you're credit score, which is somewhat scary considering how behind the states is in terms of banking and how dated and stupid the credit score system really is. its a flawed system, but I see their logic. If you can't trust someone to pay their bills on time or manage their money, how can you expect them to maintain their car and insure its in good running order or act responsible on the road when they can't in others aspects of life? In Manitoba we have public insurance. Everyone uses the same company, which is a branch of the Gov and its required by law. its got its flaws in the sense that they can basically do whatever they want, but overall its a pretty good system. Because its Gov. they have to be very PC and make sure everything is fair, it also means overall some of the cheapest rates in Canada and it insures that their are no dead beats driving around with no insurance, even if they are you get completely covered and they get raped by the police/Gov.
What about the guy who just has the worst luck, is a great driver but is hit by a drunk twice? [One of my friends lost both parents on to two different drunk drivers a year apart, so... shitty luck exists] or the guy who has the worst luck on being on the receiving end of a few fender benders? What about the guy who drives recklessly but somehow hasn't gotten a ticket vs the guy who usually is a perfect driver who got caught the one day he tried to rush to work because he was running late? Driving record isn't a good judge because it says as much about the external situation as credit report does, even though it may seem more pertinent to car insurance. Overall, credit scores generally [and/or supposedly] reflect responsibility, stress levels, planning... all the good stuff. Sucks, but. next to nothing is truly fair in this life.
you make some good points, however, even if it's bad luck, that's what insurance is there for...to cover all that. sure it sucks that someone has bad luck if they get into accidents and it's not their fault but that is the point of car insurance. to me, that means way way more because it's a FACT they are getting into accidents (doesn't matter if it's their fault or not) but my credit score is not a FACT to prove that I will be a bad driver. There is a huge difference.
Insurance companies are only in biz to make a buck....lots of bux. It's thee major way to make money with other people's money. Their advertisements may try to make you think they actually care about you....BS, they will not loose a single dime on your behalf, if it looks like they might, you get canceled....simple as that. That's any insurance, not just auto insurance.
so. to you. it's a fact that i'm a bad driver if i make a claim to insurance? I know i've claimed under comprehensive coverage some hail damage to my car. Does that make me a bad driver? If making this kind of claim would drive my insurance up, i wouldn't do it... but isn't that the point of comprehensive insurance, that i can make this claim and get fair compensation? What if i drive perfectly, park perfectly within a space [in winter] and some dumbass hits a spot of black ice and slides into my car, does that make me a bad driver? I'm just trying to clarify and extend my point about driving history, or making claims, being just as irrelevant in the end as credit scores. while i'm at it, a bad neighborhood in my opinion may be justification to raise comprehensive rates (as likely there's adequate statistics for your car to be broken into), it shouldn't affect just liability rates though.
