Credit Report and Insurance Rate

[Methanolandbrats]

Hmmmmm.....been an American Family customer for 20 years. Very few claims and I have business, life, homeowners, liability and auto with them. Just got a letter saying they are checking my credit report and "may" use the informatioin to change my rates. My interpretation is "there is a legal requirement to send you this letter before we screw you". Bought a car recently and we were Tier 1, 740+, so if they raise my rates because of this, should I shop for insurance? Any insurance tards on here? How does all this work? Those bastards get thousands out of me every year as it is :mad:

[Spicoli]

you really should be drinking at this hour.

[Methanolandbrats]

you really should be drinking at this hour. I am and I'm opening my mail too :D

[Rogue Leader]

I may or may not work for an insurance company :)

That letter is sent to anyone that an insurance score is run on. It is written the same for everyone no matter how good or bad your insurance score is, just basically a legal requirement to write it that way. Your insurance score is different than your credit rating, it weights the factors a bit differently and is used as a measure of responsibility.

Almost every company is using these scores to evaluate new policy holders. HOWEVER its is pretty strange that they are running it after you have been with them for so long, credit is generally only used for new risks (they very obviously have 20 yrs of experience with you). So IMO (as an insurance professional.... theoretically) if they do change your rates for that, thats ******** and I would shop around. I know the "big name" companies do not do that.

[Sean O'Gorman]

Progressive does that for me, but my rates have just been going down since I got them.

Working in claims, I'll hold my tongue regarding the correlation between financial security, and claims frequency/severity. Lets just say that those with the low scores help keep Spicoli's wife employed. :rolleyes:

[Spicoli]

Progressive does that for me, but my rates have just been going down since I got them.

Working in claims, I'll hold my tongue regarding the correlation between financial security, and claims frequency/severity. Lets just say that those with the low scores help keep Spicoli's wife employed. :rolleyes:

huh?:gomer: You have any idea what she does?

[Methanolandbrats]

Thanks all. In all the years I've been with them, I have never received that letter, that was the part I found strange. That, combined with the "we may" clause had me thinking, "I'm about to be bent over". But hopefully it's just a blanket audit of all their customers and my rates will remain unchanged.

[chop456]

If you decide to shop, find a local independent agent that sells West Bend and get a quote. They're competitive and you can keep your money in America's Dairyland, as God intended. :thumbup:

Plus, you get a claim-free, 10% premium reimbursement check every year.

[TKGAngel]

I had my credit score ran when I moved off the 'rents insurance and onto my own. They flat out told me they were doing it, which I appreciated.


Working in claims, I'll hold my tongue regarding the correlation between financial security, and claims frequency/severity. :rolleyes:

Since you work in claims, do you have any advice as to how I can speed up getting my insurance claim resolved? Today is 48 days since my accident and I still do not have a resolved claim. When I call the insurance company to find out status, I've been told 16 different variations of "its a third party claim, what do you expect?"

[chop456]

Call your agent.

[Sean O'Gorman]

Since you work in claims, do you have any advice as to how I can speed up getting my insurance claim resolved? Today is 48 days since my accident and I still do not have a resolved claim. When I call the insurance company to find out status, I've been told 16 different variations of "its a third party claim, what do you expect?"

Is the liability still in dispute? Was there a coverage issue with the driver/owner/payment status on the policy? Who is the other insurance company.


Call your agent.

Calling your agent isn't going to get the other insurance company to move quicker. That being said, if the claim is taking too long, why not turn it in to your own insurance company? Everyone says "oh no my rates will go up", but if you aren't at fault, it shouldn't effect your rates any more than having the accident in the first place did, and they can always collect back from the insurance company of the person who is at fault.

[Sean O'Gorman]

huh?:gomer: You have any idea what she does?

She is a judge, right?

[TKGAngel]

Is the liability still in dispute? Was there a coverage issue with the driver/owner/payment status on the policy? Who is the other insurance company.

The other company is NY Central. I reported the accident to my agent the day it happened. He told me to file the claim with NY Central, since the other driver was ticketed for failure to yield (he ran a stop sign). I go through all the rigamarole of reporting the accident over the phone. Then I have to do a paper report, which is not a problem.

Two weeks go by and I still haven't heard anything, so I call NY Central's Customer Service. Then I find out that the other driver hasn't submitted his paperwork, so NY Central just sends out another form in the mail. (When asked why they don't follow up with phone calls or get the broker involved, they tell me that they don't call because it keeps costs low for their customers.) They can't determine liability until they receive his paperwork, which they didn't receive until two weeks ago. I'm still waiting for an answer.

[Sean O'Gorman]

That isn't so much a problem with the insurance company (it is in the sense that they aren't calling him), as it is a problem with the guy who hit you being a dick. It happens all the time to me. Someone has a couple of tickets or accidents, gets put on a high risk policy, and then once they have an accident, they wont acknowledge it because they don't want their rates to go up. :rolleyes:

There isn't really much they can do for you as an individual without being able to confirm liability with the person they insure. For all the insurance company knows, he could have an entirely different story, one that has you at fault. Seriously, turn it in to your insurance. The other company wouldn't be able to win in an arbitration hearing (which is how 99% of disputed auto claims are handled) if they denied on the basis that they never spoke to the guy when you and the police report say otherwise.

[Spicoli]

She is a judge, right?

Oh, you're so smart. Wonder where you picked that up? :rofl:

She doesn't do anything with insurance claims tho, as you suggested. did you take Civics classes? or were you with the rest of the "guys" in hammer & saw class?

[KLang]

I reported the accident to my agent the day it happened. He told me to file the claim with NY Central

Haven't had a wreck in years and perhaps this differs from state to state but shouldn't you always submit the claim to you own insurance carrier and let them go after the other guys company? I thought that's how this was supposed to work.

[nrc]

Oh, you're so smart. Wonder where you picked that up? :rofl:

She doesn't do anything with insurance claims tho, as you suggested. did you take Civics classes? or were you with the rest of the "guys" in hammer & saw class?

I think he was suggesting that that those with poor credit are more apt to use insurance fraud as a means of income and therefore are more likely to end up in front of a judge.

[Sean O'Gorman]

I was just saying that you could probably make a corellation between financial status and accident frequency, which puts people in courtrooms afterwards.

[Spicoli]

I was just saying that you could probably make a corellation between financial status and accident frequency, which puts people in courtrooms afterwards.

I'm not sure I agree with that. However, I now see your point.


Not many ins cases get to court, % speaking...

Btw - wifey is currently in "D" Felony court. Criminal Division.

[Methanolandbrats]

Called my agent. Turns out this is a new development for AmFam. They mailed the letter to all homeowner policy holders because they are going to begin using credit scores among other things to rate homeowners insurance. The agent said she did'nt think it would impact me, but if my rate increases by "more than 25%, I'll get a notice". I said, "you'll get one too". :D Should be interesting to see how this pans out.

[dirtyboy]

My credit score is perfect, just like me.

[chop456]

My credit score is perfect, just like me.
Perfect people pay off their bets with delicious, hand made sandwiches. Not ones from French gas stations. :D

[JT265]

Perfect people pay off their bets with delicious, hand made sandwiches. Not ones from French gas stations. :D

Good point. :saywhat: