What does a person credit score have to do with rates on car insurance rates?
by Author on Sunday, June 6th, 2010 | 3 Comments
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It will take a few years but some states have passed laws that ban the companies from using credit in their equations. In a few years we will see if their new ‘equations’ work as well as the equations that have credit in them. If they do, then many states will be passing laws to ban credit use
Here is some more detailed info about it -
http://carquotes.fateback.com
Hope that helps.
Actuarial studies show that how a person manages his or her financial affairs, which is what an insurance score indicates, is a good predictor of insurance claims. Statistically, people who have lower insurance scores tend to file more claims.
In California credit scores are not considered in auto insurance rates. I agree that credit scores should not be used.
You need to contact the people that make the laws in your state to get your laws changed so credit scores will not be considered. Some people think it is also discrimination.
Good Luck.