Credit score and car insurance

[Xtrema]

http://www.quotescout.com/insurance-articles/car-insurance/What-s-My-FICO-Score-Got-to-Do-with-My-Car-Insurance-124.shtml

Something I didn't know at all. So your FICO determine your risk and hence the premium?

[nickyh]

It makes sense, the first thing people do when they are in a bad situation is cut insurance. Whether it be house or car.... I know of a person who came very close to losing everything and drove without car insurance for close to a year (I only found this out after the fact tho - it was a few years back).

My insurance company when I did the quote over the phone said, based on your credit score and a few other factors your premium is "$x"

[Masked Bandit]

It's been going on in the USA for at least 15 years and is finally making it's way up here. It's been used on house insurance here in Alberta for quite a few years now and is just now coming into mainstream use on the auto side. Some of the smaller insurance companies haven't got on board yet but I suspect they will before too long.

[Xtrema]

^ So if you are young and have a shitty FICO score, your PLPD won't drop? I can understand using FICO for comprehensive but it would be shitty if it affect how much a discount you get on PLPD.

[CapnCrunch]

Wow, the insurance industry is looking for more ways to gouge people?? I'm fucking shocked.... :rolleyes:

[bastardchild]

My credit score is garbage yet my insurance isn't that bad. If they raise it because of that it would be retarded as I pay my entire premium upfront for the year...

[Masked Bandit]

Originally posted by Xtrema
^ So if you are young and have a shitty FICO score, your PLPD won't drop? I can understand using FICO for comprehensive but it would be shitty if it affect how much a discount you get on PLPD.

Nothing like that.

It really only comes into play when you're getting near the top of the industry ratings with respect to your overall driving record. A good credit score may trigger additional discounts whereas a lower score may just leave you at the base price. I haven't come across a company that will use it to surcharge (yet), only discount.

[friedn00dles]

if you have a shitty credit score you will not get penalized.

If you have a good credit score you will get discounts.

:drama:

[cam_wmh]

Originally posted by Masked Bandit


Nothing like that.

It really only comes into play when you're getting near the top of the industry ratings with respect to your overall driving record. A good credit score may trigger additional discounts whereas a lower score may just leave you at the base price. I haven't come across a company that will use it to surcharge (yet), only discount.

Nothing like that eh?

So the Insurance Industry implemented a new metric to factor into their rating score. Ok gotcha. That's quite the undertaking; I've seen a similar change applied, albeit different industry, and it's quite pricey.

And from what you've said it's been mostly applied to BENEFIT the great clients, and for the less than desirable clients, there's been negligible pricing change?

To paraphrase, they spent a fair coin, to factor in an additional variable into an equation, to lose money?

I'm skeptical.

[CapnCrunch]

Originally posted by cam_wmh


Nothing like that eh?

So the Insurance Industry implemented a new metric to factor into their rating score. Ok gotcha. That's quite the undertaking; I've seen a similar change applied, albeit different industry, and it's quite pricey.

And from what you've said it's been mostly applied to BENEFIT the great clients, and for the less than desirable clients, there's been negligible pricing change?

To paraphrase, they spent a fair coin, to factor in an additional variable into an equation, to lose money?

I'm skeptical.

Insurance companies care about your safety. Why can't you just accept that. :rolleyes:

[Cos]

Originally posted by bastardchild
My credit score is garbage yet my insurance isn't that bad. If they raise it because of that it would be retarded as I pay my entire premium upfront for the year...

You have a shit credit score and have a Porsche and a BMW? WTF.


Originally posted by cam_wmh


Nothing like that eh?

So the Insurance Industry implemented a new metric to factor into their rating score. Ok gotcha. That's quite the undertaking; I've seen a similar change applied, albeit different industry, and it's quite pricey.

And from what you've said it's been mostly applied to BENEFIT the great clients, and for the less than desirable clients, there's been negligible pricing change?

To paraphrase, they spent a fair coin, to factor in an additional variable into an equation, to lose money?

I'm skeptical.

I agree. I think MB's statement could be taken another way. Insurance companies can now USE your credit score to justify keeping your rates high. If the AB government ever looked into insurance again and asked "Why does johnny pay more than Sally?" and then they can point to your credit score as an actual value. It takes the heat off for the fact they charge young men so much.

[flipstah]

Originally posted by Cos


You have a shit credit score and have a Porsche and a BMW? WTF.



Credit doesn't matter when you pay it in CASH! MAKE IT RAIN!

Seriously, they probably will use a low credit score as justifcation for your high premium but if you get discounts for a good score, I welcome said notion! :clap:

[Cos]

Originally posted by flipstah


Credit doesn't matter when you pay it in CASH! MAKE IT RAIN!



I should buy my Cayman on my LOC so I can go on the exotics cruise. Cash is for suckers I guess