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I think this is a dumb practice

I think that they run and base your auto insurance quote on credit is dumb. I mean i do not have good credit, but have a squeaky clean driving record. I have only ever had one claim and it was that a tree fell on my car during a hurricane. So that doesn't go against you. But companies base a lot of it on credit and not just driving. I just think that is dumb because it is a law that we have to have car insurance, yet they are making the financially tight people shell out more for premiums. Anyone else think this policy needs to be re thought?

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Asked by Anonymous at 3:45 PM on Feb. 10, 2009 in Money & Work

Answers (6)
  • Yes.

    Answer by KARRIEMARIE at 3:47 PM on Feb. 10, 2009

  • I have never heard of that. Our's is not based on our credit or else we would have to pay a lot more! We both have lousy credit but out insurance is only $90/mo and my hubby has a DUI... So that's not bad at all... I'm putting it in my name as soon as I get my license and it will only be $52 for both of us.

    Answer by SabrinaMBowen at 3:51 PM on Feb. 10, 2009

  • Ok who in the heck do you have for insurance Sabrina? Seriously I will look into them and refer my clients to them...if you don't mind of course.

    Answer by mamakirs at 3:56 PM on Feb. 10, 2009

  • They pull credit at my insurance company I have excellent credit and a perfect driving record. Because of both I pay 34 a month to fully insure my SUV. I have no problem with it. Being responsible should have its rewards.

    Answer by Anonymous at 4:43 PM on Feb. 10, 2009

  • Keep in mind, they also want to make sure that you will pay your insurance and deductibles as necessary.

    Answer by Anonymous at 7:07 PM on Feb. 10, 2009

  • The insurance is based on your ability to pay, not your driving record alone. So, yes, unfortunately for lower credit scores, they get screwed. Them receiving payments is the same idea as receiving credit card payments - there is risk people wont pay, so their premiums are higher.

    Answer by sunmoonstars at 6:29 AM on Feb. 11, 2009

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