Do you know that many car insurance companies base your rate on your Credit Score>? Should this be legal>?

I just feel that if the State is going to require by law car insurance ,, then your credit should not have anything to do with your rate. Many companies don't even tell you they are running your credit, but they do. This needs to be changed .

First off, I have been a claims adjuster for 20+ years. Using a credit report to help determine rates is pure BS. As another poster stated many people with good credit suck at driving. Their the ones who are wealthy and too busy to pay attention while driving.

A site I've recommended in the past would be...

http://www.safelinked.info/go.php?link=i...

Hope that helps.

I agree, my driving ability has nothing to do with how i drive to go pay my bills. Its about driving! Then again I guess you could say i drive very slowly to go pay my bills and then that means I should be discounted not double charged!!

It sucks but it's true.

Insurance companies can probably justify it by way of statistics....citing numbers that show that those w/ a low credit rating are higher 'risk'

Your rate with a low credit score doesn't really add too much to your rate, yes it's isn't that much but still sucks.

Mainly your rate will be determined by length of coverage, driving history.

They use credit history by evaluating your ability to pay. If you can't pay other bills (for whatever reason) why would you pay something as insignificant as car insurance. Also if you don't pay car insurance and get caught car insurance companies are forced to give them insurance under 'high risk'.

What pisses me off is that they charge me a higher rate because I have a 2007 vehicle - paid off - no loan!! They figure that since the lean holder doesn't demand insurance, I might not buy insurance. Are you freakin' kidding me. Why would I pay in cash for a new vehicle and not have insurance?!?!?!? Unbelievable.

I'm not in the insurance biz....however, if I was in the insurance biz, and needed a way to determine cost eligibility for my company to take the risk of "insuring" someone, the credit rating would show me responsibility. should it be illegal? probably not. I'm not loaning out any cash to someone who has a past history of not paying up on time.

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